EPC stays in the hunt for acquisitions

By Rhoda Miel
News Editor

Published: October 28, 2011 6:00 am ET

Related to this story

Topics Automotive, Consumer Products, Mergers & Acquisitions, Injection Molding, Blow Molding

GRINNELL, IOWA (Oct. 28, 3:25 p.m. ET) — Engineered Plastic Components Inc. has completed its fourth acquisition of the past 12 months and expects to close a fifth by the end of the year.

The newly added companies and individual plants have added diversity in both processing abilities and customer range, and have included both strong, ongoing production facilities and distressed companies, all fitting into what CEO and President Reza Kargarzadeh calls creating a four-legged stool for Grinnell, Iowa-based EPC.

“We’ve been in a good position to be able to take advantage of opportunities, but we have also been able to [add] companies that are good businesses to begin with,” Kargarzadeh said in an Oct. 28 telephone interview.

In October, EPC finalized the purchase of the blow molding business of JCIM LLC – the molding operation owned by auto interior supplier Johnson Controls Inc. of Plymouth, Mich. That includes a facility EPC will operate in Owensboro, Ky., as well as an operation currently in Monroe, Mich.

EPC will move the Monroe blow molding business to an existing manufacturing plant in Columbia, Mo., as well as expanding production near Marysville, Mich.

Other acquisitions this year included parts of injection molders UFE Inc. of Stillwater, Minn., Innatech LLC of Rochester, Mich., and Action Products Inc. of Odessa, Mo. Production from Action Products and Innatech are being consolidated in other EPC plants.

EPC has injection molding, two-shot molding, vacuum forming, urethane foaming, painting and assembly in addition to the expanded blow molding operations. It now has 14 plants in the U.S. and Mexico.

About half of EPC’s business is in auto production with home appliances, consumer products and the medical industries balancing out the customer mix. The addition of JCIM’s manufacturing increases its in-house blow molding capabilities and brings it a wider auto customer base, Kargarzadeh said.

EPC was already blow molding air ducts as part of its instrument panel production in Columbia and Rantoul, Ill., prior to the acquisition of the JCIM units, he said. Adding further production develops additional synergy for all of its interior trim parts.

At the same time, increased business has prompted EPC to boost its production area at the Michigan plants that were once part of Blue Water Plastics Inc.

EPC purchased parts of Blue Water — then called Blue Water Automotive Systems Inc. — in 2008 from bankruptcy. It has been operating two of the plants in St. Clair, Mich. It is now re-opening a third shuttered Blue Water plant in nearby Marysville.

The region has strong production history thanks to Blue Water and other auto suppliers in the region, which makes it a good base for EPC, he said.

The three sites in St. Clair and Marysville will house consolidated manufacturing in Michigan from existing EPC growth as well as molding that will be moved from Innatech in Romeo, Mich., and JCIM in Monroe.


Comments

EPC stays in the hunt for acquisitions

By Rhoda Miel
News Editor

Published: October 28, 2011 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Sipa buys Automa's PET bottle machinery business

November 28, 2014 10:02 am ET

Sipa SpA has acquired the injection-stretch-blow molding (ISBM) equipment business of Automa SpA. No transaction price was disclosed in the...    More

Image

RPC Group buying Iceland's Promens

November 27, 2014 8:46 am ET

In a major acquisition that combines two rigid packaging companies with international footprints, RPC Group plc has signed a 399 million euro ($497...    More

Image

Large part molder EnviroTech in 'growth mode,' adds space, equipment

November 26, 2014 9:54 am ET

Salt Lake City-based EnviroTech Molded Products Inc. is adding new equipment and expanding its factory as it gains business in some of its...    More

Image

Huhtamäki selling film division

November 26, 2014 2:10 pm ET

Private equity firm Deutsche Beteiligungs AG (DBAG) will acquire the film business of Finland-based plastics packaging group Huhtamäki Oyj for 141...    More

Image

Visteon in talks to sell its stake in Halla Visteon Climate Control JV

November 26, 2014 9:07 am ET

Visteon Corp. confirmed this morning that it is in discussions with a private equity firm to sell its stake in South Korean joint venture Halla Visteo...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events