Perrin Manufacturing Co. expanded into mold making through its April 10 purchase of financially troubled SC Mold Enterprises Inc., a 20-year-old firm in Orange, Calif.
Perrin Manufacturing, a proprietary and custom injection molder based in City of Industry, Calif., did not disclose how much it paid for SC Mold. Patrick Perrin, majority owner and president, said his company bought SC Mold while it was restructuring, but he stressed that SC Mold was not in bankruptcy.
Stan Christensen, former owner of SC Mold, said Perrin Manufacturing bought the notes of secured creditors and SC Mold's operating assets, but he too did not disclose prices. He said in a telephone interview that Perrin Manufacturing did not buy out unsecured creditors but it will give such creditors a chance to recoup losses over the long term by doing business with Perrin Manufacturing.
Christensen joined Perrin as general manager of its new mold-making division, S.C. Mold and Design, and brought with him his staff of about 20. The mold shop continues running in a 10,000-square-foot facility in Orange, Calif.
Perrin said his company has 20 injection molding machines, with clamping forces of 40-700 tons, in two plants totaling 80,000 square feet in City of Industry. The firm makes proprietary literature holders, housewares and hardware, and does custom molding, assembly, design and decorating for a range of industries. Its roots go back to Towlsaver Inc., which invented the paper towel roll dispenser in 1931, but changed its name in 1980 as it diversifed.
Perrin said his S.C. Mold division will continue to supply its customer base as well as make molds captively for Perrin. He said in-house mold-building capability will improve his firm's scheduling and even help it win contracts it could not get when it did not have a mold shop. However, Perrin probably will continue to outsource some of its mold building because S.C. Mold does not have enough capacity for all of its needs. He indicated Perrin will upgrade S.C. Mold's computer-aided-design technology.
Perrin estimated his company will have sales of about $20 million this year, including S.C. Mold's revenues.