The assets include Var-Chem’s formulas, finished goods, raw materials and customer list. Var-Chem’s products had been manufactured by Sun Chemical since a March 2008 fire destroyed Var-Chem’s plant in Elwood, IN.
“Acquiring Var-Chem is an opportunity to add some additional business into our plant as well as buy more raw materials in larger volumes,” said David Aynessazian, vice president, Kustom Group. “Adding Var-Chem’s purchasing needs will also help us mitigate some of the higher raw material prices we are facing.”
Mr. Aynessazian noted that Kustom Group will provide all of the non-bulk formulas Var-Chem had for outside customers. “We will continue to use Var-Chem’s trade names,” Mr. Aynessazian added. “We are happy to add these products to our portfolio.”
There will be a 30-day transition period where the affected Var-Chem customers can continue to order their product through their traditional channels, but Kustom Group believes that the integration of the Var-Chem business into Kustom Group will go quickly. Kustom will be contacting the Var-Chem customers quickly to answer any questions that they may have as a result of this transaction.
“We wish to make the integration of the Var-Chem business go as smoothly as possible for the Var-Chem customers,” said Mr. Aynessazian. “Many of these customers are already customers of Kustom Group. For these customers, we believe that this transaction is a benefit in allowing them to consolidate their purchases. For those customers who are new to Kustom Group as a supplier, it is our goal to show them the same level of product quality and service that they have counted on and received through their relationship with Var-Chem.”