Duct tape is great, but when the job calls for higher-tech stuff, Chase has it. The company has made and sold Chase & Sons branded protective tape and coatings, including conducting and insulating products for cable and wire makers for more than 50 years. Chase processes almost any flexible material produced on a roll -- films to fabrics. It makes laminates, sealants, and coatings for pipeline, construction, electronics, as well as printing markets. Chase pipe coating tapes, Tapecoat and Royston, are sold to oil companies and gas utilities. The company also offers expansion/control joint systems and asphalt additives for roads, bridges, and stadiums. US customers represent about 84% of revenues.
Chase operates through two segments, Industrial Materials and Construction Materials. Industrial Materials, 62% of revenue, provides products that are added to another company's products. The company's stalwart Chase & Sons trademark is included in this segment. Major product families in the segment include insulating and conducting materials, moisture protective coatings, laminated durable papers, and flexible composites and laminates. Construction Materials are sold in final form for use in the transportation and architectural, as well as construction, markets. This segment's products include protective pipe coating tapes, a polymer additive for waterproofing, waterproofing sealants, and expansion joints.
Revenue rose 4% in 2011 compared with 2010. Industrial Materials headed up 17% thanks mainly to demand from the electrical cable market for wire and cable products and demand from the industrial controls and automotive markets for electronic coatings products. Construction Materials fell 13% over the same period as the segment struggled with pipeline production problems at its UK facility that prevented the fulfillment of demand in the Middle East. The segment also contended with lower demand from the transportation and architectural markets. Lower sales of private label products additionally contributed to the segment's year-over-year revenue decline. The company's consolidated net income fell 13% in 2011 compared with 2010.
To consolidate manufacturing, Chase is closing its Industrial Materials plant in Randolph, MA, which is one of the company's first plants, making Chase & Sons electrical cable insulation tapes and other products for the wire and cable industries. The plant's operations are being transferred to other plants. The company had also moved its manufacturing operations at Webster, MA, to its Oxford, MA, plant and transferred its HumiSeal Europe manufacturing operations from Camberly in the UK to a more modern plant in Winnersh, UK.
Acquisitions are included in Chase's strategy for growth. In 2012 Chase acquired NEPTCO, which supplies engineered materials for producing copper cable and electronic packaging products, for about $67 million. The acquisition broadens the menu of products offered by Chase and creates synergies between the markets targeted by Chase and Neptco. In 2010 Chase gained a cash infusion by divesting its contract circuit board assembler, Chase Electronic Manufacturing Services (EMS), to contract manufacturer MC Assembly.
A trust controlled by heirs of the company's late founder Edward Chase owns about 12% of the company. Chase's son Peter, who serves as company chairman and CEO, holds nearly 15% of Chase. – less