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 Automotive, Consumer Products, Mergers & Acquisitions, 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

Plastic Omnium makes China investment push

February 26, 2015 4:35 pm ET

Three of the six new plants that automotive molder Plastic Omnium SA plans this year will be in China, part of a broader push it’s making in...    More

Image

German molder picks North Carolina for US manufacturing plant

February 26, 2015 4:21 pm ET

German medical goods company Raumedic AG has chosen Mills River, N.C., for its first U.S. manufacturing site and U.S. headquarters.    More

Image

Ferro acquires TherMark Holdings for $5.5 million

February 26, 2015 12:15 pm ET

Ferro Corp. said it acquired privately held TherMark Holdings Inc., a laser marking technology company, for $5.5 million in cash.    More

Image

Serbia puts Krušik-Plastika up for sale

February 26, 2015 11:39 am ET

The Serbian Privatization Agency has launched the privatization process for local plastics maker Krušik-Plastika. The agency says it is...    More

Image

3i to sell specialty chemicals company Azelis to Apax Partners

February 26, 2015 11:36 am ET

Azelis Holding SA, the specialty chemicals distributor, is being sold by its private equity owners 3i Group plc to another private investment outfit, ...    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