Michigan's Royal Technolologies buying Texas molder Hi-Tech Plastics

By Bill Bregar
Senior Staff Reporter

Published: October 12, 2012 6:00 am ET

Related to this story

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

GRAND RAPIDS, MICH. (Oct. 12, 2:05 p.m. ET) — Royal Technologies Corp., a Michigan-based supplier to automotive, office furniture and consumer products markets with about 250 injection molding machines, plans to buy Hi-Tech Plastics Inc., a custom molder in Mission, Texas, near the Mexico border.

Royal added a plant in Alabama three years ago to reach customers in the Southeast. The acquisition of Hi-Tech Plastics — which had worked with Royal Technologies for more than a year on some molding jobs — gives Royal a location next to Mexico, said Royal President and CEO Jim Vander Kolk.

“With the acquisition of Hi-Tech in Mission, Texas, we’ll be better positioned to serve existing customers and to pursue new business with potential customers throughout the region,” Vander Kolk said.

Royal Technologies issued a news release Oct. 10 announcing that the company had signed a letter of intent to acquire Hi-Tech Plastics.

Royal Technologies is buying Hi-Tech Plastics from its founder and CEO, Doug Bennett, who will retire. Terms were not disclosed.

“His decision to retire is basically what led us to acquiring Hi-Tech acquiring High-Tech,” Vander Kolk said in a telephone interview.

Neither company releases sales figures. But Royal Technologies is much larger, with about 250 presses ranging in clamping force from 55 to 1,800 tons and about 900 employees. Hi-Tech runs about 20 presses and employs 90 people, Vander Kolk said.

He said Royal Technologies partners with customers to design parts, and does assembly. Royal also has urethane foam molding operations.

Royal is based in Hudsonville, Mich., where it has three factories. The employee-owned company was founded in 1987.

In 2009, Royal built a factory in Cullman, Ala.

During the past year, Royal Technologies worked together with Hi-Tech Plastics to serve about five customers in the southwestern United States and Mexico, Vander Kolk said. “The alliance has helped us better serve customers in the automotive, furniture and consumer products industries, and we are very excited about how we can grow from here,” he said.

The transaction should be completed by the end of the year.

Bennett founded Hi-Tech Plastics in 1982, and the following year manufacturing began with three employees running two injection molding machines in a rented bus garage in Cambridge, Md.

According a company history, Bennett was instrumental in helping Black & Decker Inc. convert the metal boxes it was using for power tools to plastic boxes. When Black & Decker and other key customers moved their manufacturing to Mexico, and spurred by price pressure from offshore competition, Hi-Tech closed its Maryland plant and moved to the southern tip of Texas in 2006.

Hi-Tech expanded the Mission factory to support Black & Decker’s operations in nearby Reynosa, Mexico.


Comments

Michigan's Royal Technolologies buying Texas molder Hi-Tech Plastics

By Bill Bregar
Senior Staff Reporter

Published: October 12, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

French investment firm buys Alabama-based CSP Technologies

January 30, 2015 1:10 pm ET

A French investment firm has finalized a deal to buy CSP Technologies Inc., an Auburn, Ala., company that makes specialty plastics packaging.    More

Image

Lubrizol buys Brazil-based coatings technology manufacturer

January 30, 2015 11:50 am ET

Specialty chemicals company Lubrizol Corp. of Wickliffe, Ohio, said it has acquired a Brazilian company that makes coatings technology for products...    More

Image

Lund adds to aftermarket auto products portfolio with buy of Bushwacker

January 29, 2015 2:49 pm ET

Lund International Inc. has expanded its portfolio of plastic aftermarket vehicle accessories by acquiring Bushwacker Inc.    More

Image

Chemtrusion, Mytex Indiana compounding plant set for expansion

January 29, 2015 1:35 pm ET

Japanese and American partners in a compounding plant in Indiana plan to expand the facility.    More

Image

Falcon Plastics expands in South Dakota

January 29, 2015 11:45 am ET

Falcon Plastics Inc. is putting the final touches on a 60,000 square foot addition that will nearly double the size of its Brookings, S.D., manufactur...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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

More Events