Coz Chemical Division, a Northbridge, Mass.-based compounder and colorant supplier, plans to grow by acquiring middle-market companies. Coz compounds and brokers thermoplastic resins, processes customers' materials and sells additive concentrates. It is the smallest of the three divisions owned by publicly held Allied Products Corp. of Chicago.
Allied's other divisions, Verson and Bush Hog, have sales in excess of $100 million.
``Our goal is to be as large as the others,'' said Kenneth Solo-mon, Allied's executive vice president for corporate development and chief financial officer.
Martin German, Coz operations manager, said, ``Our goal is to make each of [the divisions] a comparable size, and acquisitions will boost our division up. We see the business in a growth area into the year 2000, and we need to acquire [businesses] to meet the growth need.''
The ISO 9002-certified company is seeking acquisitions of companies with sales of $20 million to $50 million. Last year, Coz's sales were around $35 million. About 70 percent of its sales is in the grooming and cosmetics markets, with Gillette Co. as its biggest customer.
The 250,000-square-foot North-bridge plant has six compounding extrusion lines and 260 employees. In addition, Coz plans to build a facility in the near future.
``We'll increase capacity and improve the flow of materials by constructing a new facility,'' Solomon said. ``We are currently looking at sites within a 10-mile radius of our plant. It will increase capacity 50 percent and construction could begin the fourth quarter this year, with completion next year.''
Allied bought the division in 1969 from Henry Coz, who remained president of the division until his retirement earlier this year.
The firm's new president is Gary Campbell, former president of SysTec Engineering in Jeffersonville, Pa.