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

Coveris makes another flexible packaging buy

August 22, 2014 9:34 am ET

Coveris Holdings is continuing its rapid acquisition pace, this time picking up flexible print specialist Learoyd Packaging (Holdings) Ltd. to boost...    More

Image

Making the most of complexity

August 22, 2014 1:02 pm ET

In the global market for injection molded parts, custom molders have tried a million different ways to differentiate themselves from the pack. Make...    More

Image

Promens closing 2 German blow molding plants

August 22, 2014 9:54 am ET

Promens hf, the Icelandic packaging group, is planning to restructure its packaging operations in Germany with the closure of two blow molding plants ...    More

Image

German injection molders Metz-Werke and Inotech to collaborate

August 21, 2014 11:47 am ET

German injection molding companies Metz-Werke GmbH & Co. KG and Inotech Kunststofftechnik GmbH have announced that they have joined forces to bring...    More

Image

Inteplast expands in corrugated sheet with Coroplast deal

August 21, 2014 5:28 pm ET

Packaging major Inteplast Group has acquired its main competitor in corrugated plastic sheet, Coroplast Inc. Inteplast gets corrugated sheet plants in...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events