Western Industries Inc. has acquired KSQ Inc. of Winfield, Kan., a large-part custom blow molder. Officials would not disclose the purchase price. Western Industries, acquired by the EXOR Group and management in 1994, is headquartered in Milwaukee and makes custom metal and plastic blow molded and injection molded parts. With the June 18 KSQ acquisition, about 25 percent of Western's total business is in plastic.
The expansion is part of a long-range strategic plan to expand Western through acquisitions and internal growth.
``The added capabilities of KSQ will more than double our capacity in large-part custom blow molding,'' said G. Ronald Morris, Western president and chief executive officer. ``The backing of EXOR will provide the added stability and greater availability of capital that will allow KSQ to grow as a part of Western Industries.''
KSQ ranked 49th in Plastics News' 1995 survey of North American blow molders, and 16th among industrial blow molders, with 1994 sales of $25 million.
Last year, KSQ had sales of $31.5 million, according to a news release. The firm, which was started in 1987, will be operated by its current management as a wholly owned subsidiary of Western.
KSQ blow molds high density polyethylene for original equipment manufacturers in the recreation, toy, agricultural, construction and office furniture markets. Some of its customers include Rubbermaid Inc., Life Time Products, Tucker Housewares, Delta Advanced Plastics, Kooler Kraft and General Plastics.
Western, which had about $170 million in total sales last year, will use 270,000 square feet of manufacturing space at KSQ's facilities, which include one warehouse and two manufacturing buildings.
KSQ has 14 blow molding machines and 150 employees.
``This is a strategic acquisition in terms of a larger percentage of total sales in blow molding, an area we will continue to concentrate in,'' Morris said.
He added that the acquisition complements the Western Industries blow molding operations in Chilton, Wis., which serve many of the same industries. The Chilton products division and KSQ make products using accumulator-head blow molding machines with head sizes of 20-80 pounds. Western does not blow mold with smaller head sizes and does not serve the automotive or bottle industry.
In addition, the Chilton unit injection molds parts for the food, lawn and garden, and recreation markets. Injection molding contributes about $3 million of Western's annual sales.
Western Industries has five plants in Wisconsin and a sixth in Tennessee. However, only the Chilton plant processes plastics. The company has about 1,250 employees.