The deal to acquire LJ – previously a division of polymer distributor Plastribution – was completed at the end of last week.
LJ has a manufacturing capability for textiles finishes and dispersing agents, though resale makes up a large proportion of its business.
Plastribution had previously announced its intention to cease trading the operation by the end of December 2018, as it looks to exit the textiles segment of its business by the end of March 2019. The company’s other businesses – Thermoplastics, Plasfilms and Plascoatings – will continue to trade as normal.
In a statement on its website, Plastribution said it had decided to wind LJ down after “careful consideration of the historic performance of the business and, in particular, its future prospects”.
MagnaColours was informed of the imminent closure by the firm’s general manager, Andy Lee, and arranged a meeting to discuss plans.
MagnaColours marketing manager Paul Arnold said: “LJ Specialities will diversify our business and capabilities. While it’s a different type of end user, it’s related to what we currently do.
“We’ve got the in-house knowledge to service that industry too, so really it adds a new string to the Magna bow, gives us a more diverse product offering and moves us into new markets as well.”
LJ’s seven staff have been retained and will join the 36 currently employed at Magna Colours. The LJ team led by Lee will transition to employment with MagnaColours immediately, where “a smooth continuation of service will be created”.
LJ’s name will be retained, at least for the time being, and for now the business will continue to operate from its existing base in Chesterfield, around 30 miles from Magna’s Barnsley premises. Turnover figures for both businesses were not disclosed.
Lee said: “Along with the rest of the team at LJ I am delighted to be able to continue the development of the LJ offer with strong support and also continue our long association with customers and suppliers.”
Plastribution managing director Mike Boswell added: “I’d like to thank the teams at LJ Specialities and MagnaColours for the proactive and positive way they have approached this opportunity. This is a marvellous outcome for Magna and the employees, customers and suppliers of LJ Specialities and we wish them well for the future.”
In August MagnaColours launched MagnaPrint Emboss Ink, a water-based ink that can be used to produce embossed effects on polyester fabrics and garments. This followed the release of MagnaPrint Glow FX, a glow-in-the-dark phosphorescent ink.