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SCIGRIP Acquires Integra Adhesives, Consolidation Effect on Future Unsure

Posted on 08 April 2016 by cradmin

3 glue logosAccording to a recent press release, Integra Adhesvies, one of the largest adhesives companies serving the countertop/surfacing market, was bought out this month by SCIGRIP Smarter Adhesives Solutions, a global manufacturer of structural and engineered adhesive products and a wholly owned subsidiary of IPS Corporation. Known already for acquiring top talent in this segment of the surfacing market, such as its acquisition of GlueWarehouse.com, which included industry icons Chad Thomas and Ray Aleksic, as well as hiring well known surfacing adhesives expert Bryan Stannard, formerly of ITW Polymers Sealants North America (previously known as Plexus), SCIGRIP is definitely making a move to dominate the market. Integra Adhesives has a solid reputation and years of experience serving the countertop/surfacing market providing adhesive for solid surface, quartz and natural stone. It remains to be seen if SCIGRIP can now maintain its hold on all of the top talent it has on board. In this reporter’s estimation, doing any less would open doors for its diminishing number of competitors to point to the size, but lack of specific long-term industry expertise.

According to the release, Integra Adhesives will maintain its headquarters in Abbotsford, British Columbia, Canada, and manufacturing will take place both there and in Durham, N.C., but it is fair to wonder how long that can take place before a shift to a single facility and the cost reduction of economies of scale will come into play.

Also fair to wonder is how GlueWarehouse.com will be affected in the face of this buyout of its largest North American competitor. Some speculate SCIGRIP will fold the two entities together creating a powerhouse of knowledge, experience, salesmanship and industry respect. However, others say this will mean cutting some of the most industry-trusted staff in one or both companies – Integra and/or GlueWarehouse.com, which would likely weaken its position, especially considering it also has a European arm requiring expertise.

This move, while going against what we’ve been seeing in the market with more and more adhesive companies coming into play in the past half a dozen years, is not really all that surprising. That is once you take into account the team-up recently announced between TENAX and GlueBoss, as well as the fact that Colt Industries dropped Corian and Zodiaq in 17 states, dropping SCIGRIP (private-labeled) along with the DuPont materials and replacing it with GlueBoss.

One move that may be expected is a price drop in the SCIGRIP products to undercut GlueBoss and force it out of the market, giving the former a near-monopoly in the marketplace. However, 0ne may also wonder if other foreign players, such as Confiad, which seems to be making a move to increase its awareness in the marketplace, might now have an opportunity. Also, although ITW PSNA (formerly Plexus) is appearing to be withdrawing from the surfacing industry as of late, this may prove to be an opportunity for it to get back in the game. Of course, only time will tell how this all plays out, but fabricators we have spoken with appear to be nervous that they will have less choice along with less expertise. Of course Jean Poisson of Integra seems to have done well during his tenure in the industry and with the likes of Thomas, Stannard and Aleksic can certainly take on all comers.

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