Reunion Resources Co. has entered plastics processing by buying custom injection molder Oneida Molded Plastics Corp. of Oneida, N.Y., and plans more plastics acquisitions. Reunion, based in Houston, paid $3.1 million in cash for Oneida, acquiring its common stock from Chatwins Group Inc., a private investment firm in Pittsburgh. Chatwins has owned Oneida since April 1994.
Reunion President Thomas Amonett said his firm's other potential takeover targets include undisclosed plastics companies in which Chatwins has equity interests as well as unrelated companies.
Oneida President Dave Harrington will help negotiate plastics acquisitions. Harrington said the search includes injection molders and other types of processors, including firms outside Oneida's main market in the eastern United States.
``We need to expand our geographic base and the processes we offer,'' Harrington said in a telephone interview.
Oneida's injection molding plants are in Oneida and Phoenix, N.Y., and Clayton, N.C. Italso operates toolmaking shops in Phoenix and Clayton, for captive programs and for outside customers.
In Plastics News' 1995 survey of North American injection molders, the company reported 1994 molding sales of $32 million and 59 presses at its three plants. Reunion said Oneida's sales were $18.3 million and pretax income was $868,000 for thesix months ended June 30. Oneida's debt was about $10.1 million, including $4.9 million owed to Chatwins. Harrington said Oneida's major markets are business machines, recreation, appliances and medical. Amonett said Reunion's foray into plastics will allow it to use large net operating losses it incurred in its oil and gas exploration and development business. The net operating loss for tax purposes of the Nasdaq-traded firm amounts to about $240 million.
``Plastics gives us taxable income and allows us to use this loss,'' Amonett said in a telephone interview from Houston.
Reunion's sales last year were $7.5 million, mainly from oil and gas, a business it said it may exit. It also has vineyard and mineral property interests.
Chatwins bought 38 percent of Reunion's stock in June and has voting rights for 9 percent more.
