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
Companies & Associations

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

Improvements to Radici's nylon line takes it into more applications

March 27, 2015 9:00 am ET

Radici Group, the Italian-headquartered materials firm, outlined the benefits of its Radilon and Radistrong nylon products at NPE 2015.    More

Image

DuPont exec: Still lots of lightweighting needed in the auto industry

March 23, 2015 6:00 am ET

In that role, Jeffrey Sternberg is responsible for bringing the breadth of DuPont advanced materials — as well as renewably sourced materials...    More

Image

How Faurecia made over a relic

March 23, 2015 6:00 am ET

Everything about Faurecia SA's interior trim plant in Saline, Mich., is big.    More

Image

Magna investing $135 million for new exteriors plant in Mexico

March 18, 2015 5:04 pm ET

Magna International Inc has started construction of a $135 million automotive exteriors manufacturing facility in Querétaro, in central Mexico.    More

Image

Auto supplier Visteon seeking new CEO

March 17, 2015 10:04 am ET

Visteon Corp. said Monday CEO Tim Leuliette will step down by the end of the year.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

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

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

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

More Events