Precise Technology Inc. more than doubled the size of its operations with the March 29 purchase of Tredegar Molded Products, a subsidiary of Tredegar Indus-tries Inc. headquartered in Richmond, Va. ``We've been aggressively searching to acquire molders in markets common to ours and with technologically advanced molding capabilities,'' said John Weeks, Precise Technology's president and chief executive officer.
Precise reported sales of $49 million for 1995, and operates 81 injection presses in molding and mold-making facilities in Pittsburgh and molding plants in West Lafayette, Ind.; Newark, Del.; Chicago; and Rochester, N.Y.
The combined entity will be known as Precise Technology Inc. with headquarters in North Ver-sailles, Pa., and will have more than 1,000 employees in 11 manufacturing plants and three mold-making facilities.
Both companies declined to discuss terms of the sale. How-ever, Tredegar will record an aftertax gain related to the sale during the first quarter of 1996.
Tredegar announced in August that it was considering the sale of its Molded Products division, and hired the investment banking firm of Bowles Hollowell Conner & Co. in Charlotte, N.C., to investigate possible divestiture of the molding operation.
Tredegar Molded Products currently has eight plants, including a molding facility, mold-making plant and technical center in St. Petersburg, Fla. Other plants are in Grafton, Maine; Excelsior Springs, Mo.; State College, Pa.; and in Graham, N.C., where it has a new, $6.3 million facility.
Molded Products' operating profit was $2.7 million on sales of $84.9 million for 1995. The subsidiary's net assets were about $35 million as of Dec. 31.
Thomas E.B. Phillips, spokes-man for Tredegar, said the sale of its Molded Products subsidiary is in keeping with the company's goal of becoming more narrowly focused on its core businesses. Those involve primarily specialty plastic films for disposable diaper backsheets and applications in the personal-care and medical products industries, and aluminum extrusions. Both Tredegar Molded Products and Precise have a presence in almost identical markets, and serve a similar ``blue chip'' customer base.
``We feel there's a real opportunity to service particularly the needs of the health-care and packaging industries,'' Weeks said. ``Tredegar Molded Products is very strong in the packaging and consumer markets as well as the health-care market.''
He pointed out that both companies built their companies on a strong base of mold making. Tredegar's mold-making division in St. Petersburg was formerly Massie Mold. Although Tredegar had the rights to the name Massie, it chose not to use it, Weeks said. With the new ownership, however, the mold-making division will be called Precise Massie, and marketed as a division of Precise Technology Inc.
Precise already has aggregated the two companies on a management level, Weeks said, and added some key Tredegar personnel to the Precise management team. Other personnel changes will be made later as the company looks at combining specific de-partment or job functions.