The principals of custom injection molder Stelray Plastic Products Inc. have purchased the Orleans, Mass., injection molding division of film manufacturer Applied Extrusion Technologies Inc. for an undisclosed sum.
The former AET division will operate under the name of Areo-Med Molding Technologies Inc. and remain in Orleans, Lawrence Saffran, a Stelray principal, said in an Oct. 22 telephone interview. Saffran was named president of Areo-Med, a supplier to the aerospace, medical and personal-care product markets.
Saffran said Areo-Med's 20,000-square-foot facility operates 11 conventional horizontal injection molding machines with 30-300 tons of clamping force. The plant's 35 employees will be retained, according to Saffran, who said the former AET division has annual sales of $3 million.
Ansonia, Conn.-based Stelray operates 11 injection molding machines at its 15,000-square-foot Connecticut plant and employs 25. It has annual sales of $2.5 million, according to Saffran. He and his father, Mortimore Saffran, also own E.H. Kneen Co. Inc. in Ansonia, a manufacturer of metal boxes, tape spools and shells for the medical and personal-care markets with annual sales of about $2.5 million.
Anthony Allott, vice president and chief financial officer of AET, also declined to disclose financial details of the sale. He said selling the injection molding division is part of the firm's previously announced intention to divest itself of noncore businesses and to invest the proceeds in its oriented polypropylene film operations. He said the unit acquired by Stelray accounted for less than 1 percent of AET's annual sales.
Peabody, Mass.-based AET reported $233.9 million in sales for 1996 and is one of North America's largest manufacturers of OPP film.