ABT Building Products Corp., a Wisconsin-based maker of wood building products and foamed plastic trim moldings, has added injection molding capacity by purchasing KenTech Plastics Inc. The deal will give ABT plastics-related sales of about $55 million - $32.7 million from ABT and $22 million from KenTech -based on 1994 sales. Michael Lupo, executive vice president and chief financial officer, said ABT wants more plastics firms that make building products.
``We're looking for other plastics companies as well,'' Lupo said. ``Our objective is to build our plastics business to over $100 million.''
KenTech, based in Hopkinsville, Ky., molds shutters and accessories used for mounting outside lights, electrical plugs and gable and dryer exhaust vents. The company, with plants in Hopkinsville and Independence, Iowa, runs 27 injection molding machines with clamping forces of 125-2,000 tons, and two thermoformers.
The acquisition means KenTech will double production of shutters, to about 800,000 pairs a year, Lupo said. He said Ken
Tech recently bought three large, rebuilt machines. One is a 1,200-ton Cincinnati Milacron and the other two are Natcos, with clamping forces of 1,200 tons and 1,500 tons.
ABT officials were attracted to KenTech because they wanted to bring shutter molding in-house, Lupo said.
ABT sold about 440,000 pairs of shutters in 1994, all of them purchased from outside vendors. KenTech had molded about 400,000 pairs a year, many of them private-label, but none of them for ABT, according to Lupo.
Lupo said KenTech will supply all shutters ABT sells. ABT no longer will outsource shutters.
Public data is not available on how many plastic shutters are made each year.
But the planned level of production would make ABT, through KenTech, a significant shutter molder, according to one competitor.
``If they're selling 800,000 pair, sure, they'd be major,'' said David Bures, operations manager of Shutters Inc. of Hebron, Ill.
ABT will sell building products made by KenTech through its network of distributors and home center retailers. KenTech's accessory items complement ABT's wood siding and paneling products.
ABT bought KenTech from its owners, three executives and Market Street Investors, a private investment firm in Mil-waukee.
They had purchased the old Duraco Industrial Products business in 1990, and changed the name to KenTech in 1992.
Alton Mitchell will remain as KenTech president and chief executive officer.
In addition to bringing injection molding technology to ABT, KenTech also brings with it some new, nonconstruction markets through its proprietary products. KenTech makes materials-handling items for bakeries and the egg and poultry industry.
KenTech also does custom molding.
ABT, based in Neenah, Wis., reported 1994 sales of $203.3 million and profit of $21.7 million.
ABT was established in 1992 to acquire part of the Building Products Division of Abitibi-Price Corp.
ABT went public in mid-1993. Its major plastics operation, in Middlebury, Ind., extrudes polystyrene and PVC moldings that resemble wood.