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Topics Medical, Mergers & Acquisitions, Rapid Prototyping, Molds/Tooling, Injection molds
ARC Group Worldwide Inc. is expanding its reach to plastic injection molding, tooling and magnesium injection molding with the acquisition of two Colorado companies — Advance Tooling Concepts LLC and Thixoforming LLC.
Deland, Fla.-based ARC already does 3D printing and advanced manufacturing technologies including metal injection molding.
“Our core is metal injection molding,” said Jason Young, chairman and CEO of ARC Group, in a phone interview. “So plastic injection molding overlaps what we do quite well.”
ARC is buying Longmont, Colo.-based Advanced Tooling Concepts for $24 million in an all-cash transaction. Terms of the Thixoforming deal were not disclosed.
Young said ARC already uses over-molded and injection molded plastic components, and that Advanced Tooling Concepts also has been a top supplier of metal injection molding tooling to ARC.
ARC was familiar with Thixoforming too — the company is located adjacent to an ARC metal injection molding business, also in Longmont, Colo.
Advanced Tooling Concepts, founded in 1999, does plastic injection molding and specialized tool making. It caters to the medical device, electronics, consumer and defense industries. It has automated molding operations and a Class 100,000 clean room. The company had 2013 sales of more than $17 million, according to ARC.
Thixoforming, which was started in 1997, produces complex injection molded components from magnesium alloys.
Overall, the acquisitions also boost ARC Group’s 3D printing capabilities. Young said ARC has added 16 industrial-grade printers of various makes and models in the last six months. Nine of them are for plastics.
The company also is developing an online quote system that it will roll out company-by-company in the next few years.
ARC has entered into a credit agreement with RBS Citizens N.A. and Capital One National Association, and their lenders to gain $90 million in new senior secured credit facilities to help finance the deals, repay certain loans and notes, and other corporate purposes.
ARC, which was founded in 1987, makes precision components including flanges and fittings.