LONDON—British specialist wire and technical plastics molding company Carclo Engineering plc is investing £25.6 million ($41.4 million) to buy the Technical Mouldings Division of London-based EIS Group plc.
TMD, as the unit is known, comprises five plastics custom molding companies located strategically in industrial regions of England, Scotland and Wales to serve international original equipment manufacturers in the automotive, telecommunications, office equipment and electronic goods sectors.
The division's customers include Sony, IBM, Xerox, Polaroid, NCR, Ford Motor Co. and Oki.
Carclo of Sheffield, England, has a growing plastics injection molding capability alongside its metal engineering operations.
Its general engineering division has three English subsidiary companies: Plasro Plastics Ltd. of Mitcham, which molds components for medical devices; White Knight Products Ltd. of Eastbourne, a video and compact disc jewel-box molder; and automotive control cable manufacturer Gill's Cables Ltd. of Lichfield, which injection molds related plastic parts.
Carclo plans to link the newly acquired TMD operations with its three molding firms in a new Technical Plastics Division. The firm said that all its molding companies supply a customer base that is similar in profile to TMD's.
``The acquisition of TMD therefore complements Carclo's strategic focus on technical plastics and rebalances Carclo's portfolio of businesses towards this important growth market,'' the company said in a news release.
Carclo also said it will ``add value to TMD through its focus on margin improvement and through selective capital expenditure,'' taking advantage of openings to supply new OEMs in United Kingdom development areas.
TMD units being taken over include:
Office equipment and automotive molding producers Davall Moulded Gears Ltd. of Hatfield, England.
Davall Scotland Ltd. of Harhill, Scotland.
Silleck Moulding Ltd., a precision plastic component molder in Eaglescliffe, England.
Silleck Mouldings (Scotland) Ltd. of Inchinnan, Scotland, which produces components and subassemblies for the Scottish electronics, office equipment and consumer products market as well as for export.
Silleck Davall Ltd. of Dafen, Wales, molder of parts for electronics makers and other OEMs in the region.
TMD recorded sales of £37 million ($60 million) for the year ended Dec. 31, up from £33.8 million ($54.7 million) in the previous year. EIS said it has invested £12 million ($19.4 million) in the new plant and equipment for the division in the past three years.
TMD also has a technology center at Hatfield, offering customers design and prototype services for plastic components, mold tooling and complex assemblies.