DETRIOT—Casting an eye toward new markets, LDM Technologies Inc. has acquired Kenco Plastics Inc. of Farmington Hills, Mich., and added blow molding to its growing automotive repertoire.
The sale, which was completed Sept. 30, provides LDM with six plants that produce a variety of blow molded air-management parts and fluid reservoirs for underhood applications. Terms of the sale were not disclosed.
The acquisition is LDM's second this year of a parts producer that makes air-management systems. In May, LDM, based in Auburn Hills, Mich., purchased a 74,600-square-foot Kendallville, Ind., plant owned by Aeroquip-Vickers Corp. that makes injection molded air-vent assemblies.
The Kenco acquisition helps LDM become more vertically integrated with its existing line of instrument panel clusters and underhood components. The company makes interior, exterior and underhood parts, mainly for Big Three automakers.
Prior to the purchase, LDM had limited its capabilities to injection molding.
``This allows us to offer more products to our existing customers, and existing product lines to new customers,'' said LDM senior vice president William Kessler.
Kenco recorded $58 million in 1996 blow molding sales, according to figures submitted to Plastics News for its upcoming ranking of North American blow molders. The company operates 80 monolayer coextrusion machines at the six plants, according to Kenco's figures. Those plant sites include two facilities each in Owensboro, Ky., and Owosso, Mich., a facility in Corunna, Mich., and one in Gallatin, Tenn.
Kenco President Edward Narens and another former company official did not return telephone calls late last week.
The company makes a variety of air conditioning and heating ducts, among its products. Materials used include polypropylene, high density polyethylene and other thermoplastic olefins.
The acquisition gives LDM access to new customers that use Kenco's products, including Toyota Motor Corp., Mercedes-Benz of North America Inc., Mitsubishi Motors Corp. and AutoAlliance International Inc., a joint venture of Ford Motor Co. and Mazda Motor Corp. Kenco primarily supplies vehicles produced for the North American market and also works with Big Three automakers.
With the acquisition, LDM now operates 18 manufacturing facilities in North America. The company ranked eighth on Plastics News' list of North American injection molders. According to Securities and Exchange Commission filings, LDM recorded $306 million in pro forma 1996 sales.
In March, the growing company also bought Molmec Inc., an injection molder of nylon door handles and other components based in Walled Lake, Mich. Molmec recorded sales of about $85 million in 1996.