In a vertical integration, GB Electrical bought the business of Vision Plastics Manufacturing Co. from Ole and Christian Sorensen on Oct. 3 and this month expects to acquire their technology, all for about $21.5 million. GB Electrical manufactures tools and consumables that are sold to electrical distributors and mass merchandisers. The company is based in Glendale, Wis.
The acquisition ``solidifies our position as a prime, low-cost producer of a rapidly expanding product category,'' GB Electrical President Ted Lecher said in a telephone interview.
Vision Plastics employs 32 and, using natural nylon and some coloring agents, manufactures plastic cable ties in a 21,000-square-foot San Diego facility that will remain in operation.
Vision Plastics has developed a 75-pound, double-lock tie that, according to Lecher, is ``50 percent stronger than the competition's.''
Historically, GB Electrical had sold Vision Plastics cable ties through its distribution and retail channels, and now adds Vision Plastics' other outlets.
Rondi Rohr-Dralle, a former GB Electrical executive, was named general manager of Vision Plastics.
GB Electrical generated sales of $72 million for the fiscal year ended Aug. 31. GB Electrical had sales of about $24 million in 1988, when it became a wholly owned subsidiary of Applied Power Inc., and has grown both internally and through acquisitions such as Vision Plastics.
Applied Power specializes in industrial motion and position control applications and combining hydraulic and vibration technologies with electronics. The company is based in Butler, Wis. Applied Power reported 1995 fiscal year-end profit of $20.1 million on sales of $527.1 million.