Nylex acquires water systems company

Plastics producer Nylex has announced a $9 million acquisition of water systems company Australian Rotomoulding Industries Plastank (ARI).

ARI manufactures and markets plastic water tanks and grey water systems and has an annual revenue of about $20 million.

Nylex managing director Glen Casey said ARI's base earning before tax were about $2 million, with synergies and sales growth expected to boost its base earnings significantly.

"Water conservation products have been identified as a major area for growth for the (Nylex) group in the strategic review, which led to the group being honed down to four core divisions," Casey said.

The acquisition is also expected to allow for an expansion of Nylex's industrial products division, with a focus on the distribution and manufacture of water products.