Sun Capital buys US mat maker Kraco

Compton, California -- Sun Capital Partners Inc. has acquired Kraco Enterprises Inc., which a Sun Capital official said will help the rubber floor mat manufacturer grow both domestically and internationally.

The purchase puts Kraco in a position to expand organically and through acquisitions, bolster its product offerings, and improve its manufacturing operations, according to Anthony G. Polazzi, vice president of Sun Capital.

No management or work force changes are planned at Kraco, said Robert Brocoff, president of the company, which prior to the sale was owned by the Kraines family for 53 years. The companies didn't release financial details of the transaction.

Brocoff called the acquisition a win-win for both companies. “We're looking forward to it. This will free us up to develop new lines,” he said, adding that in 2009, Kraco plans to introduce a full line of environmentally friendly Eco Mats made from recycled materials.

He said Sun Capital has affiliates with extensive operating experience in the manufacturing and automotive sectors “as well as deep financial resources to help Kraco execute its long-term strategic plan to maintain and grow its dominant position in the automotive aftermarket floor mat industry.”

Sun Capital has eight automotive-related product manufacturers as part of its growing portfolio, Polazzi said. He pointed out that Kraco's management team “has done an excellent job in building a customer-focused business providing innovative product development.”

Kraco is a leading manufacturer and distributor of automotive aftermarket floor mats-with a 45-percent share of that market, according to Brocoff-as well as cargo floor mats for vehicle, home and shop use. Founded in 1954 by Maurice H. Kraines, who died in 2005, the company operates a 425,000-sq.-ft. plant in Compton and employs 135.

From Rubber & Plastics News (A Crain publication)