Keithsville, Louisiana H Enterprises, holding company for J&L Industries, a manufacturer of specialty folder-gluers, has entered into serious negotiations with Roger Crawford, principal stockholder of TEI, a supplier of material handling equipment for the finishing line. The parties are currently proceeding with due diligence and anticipate that the transaction will close in early July.

TEI and J&L plan to operate so as to preserve the individual identities of the companies. Over time, the strengths of each company will be transferred to the other.

"There are a number of mergers occurring in our industry today to consolidate excess capacity, but that is not what this is about. This is about growth and better service coverage," said Jim Weissenfels, president of TEI. "J&L and TEI are independently strong businesses with bright futures. This restructuring just accelerates the long range plans of both companies."

The two companies have previously worked together in several areas, including product development and marketing. Alliance was recently established to jointly market TEI licensed products and J&L products in Europe. The companies are also working together on a new automated take-off system for specialty folder-gluers.

"The fit between the companies is excellent," said Jerry Phillips, president of J&L Industries. "The product lines are complementary, and both companies enjoy a respected position in the industry."