Skellerup Holdings has bought Auckland-based Nexus Foams for about $6.5 million, which it says will immediately boost the group's earnings.
The deal is expected to close tomorrow, with Skellerup acquiring the Nexus business and assets. Nexus was founded more than 20 years ago by engineer Nick Davenport, whose family interests own the company. It develops high-performance foam and soft material components.
Skellerup executive director David Mair said the Nexus acquisition will complement the company's Ultralon foam range, used in marine, sporting and orthotic products, and be immediately earnings accretive.
"Nexus has a leading market position supplying custom foam products for health, electronics, appliance, construction and comfort applications. Nexus has long established relationships with key international customers and suppliers," he said.
Skellerup's foam products fall under its industrial division and were noted as boosting sales into the international marine leisure boat market in the six months ended December 31. Skellerup's industrial division lifted sales 6 per cent to $78m in that period.
The company's shares rose 0.9 per cent to $2.20 in early trading, and have gained 8.9 per cent so far this year.