Lebanon Plastics Inc., a rapidly growing Ohio injection molder, has acquired new capital for the planned acquisition of other custom injection molders, according to its owner.
The 4-year-old company has agreed to a minority investment by Cincinnati-based River Cities Capital Fund Ltd. to support that strategy, said Martin Kelly, Lebanon's president and majority owner. Both Kelly and the venture capital firm declined to disclose the amount of the investment.
In a prepared statement, Eric Lenning, a principal in River Cities, said: ``We hope in partnership with Mr. Kelly to grow the company to $50 million in sales over the next several years.''
Lebanon Plastics, based in Lebanon, Ohio, near Cincinnati, was bought in 1993 by Kelly. The company initially occupied a 45,000-square-foot building with eight aging presses with clamping forces of 350-1,000 tons, Kelly said in a Nov. 12 telephone interview. It now operates 14 presses averaging 21/2 years of age in a 57,000-square-foot facility. The firm employs 95 and is undergoing ISO 9002 registration audits this month, according to plant manager Jeff Creigmile.
The company has followed a strategy of internal growth to date, Kelly said. It has invested more than $4 million in new equipment and building renovation in the past four years, including seven new Cincinnati Milacron presses with clamping forces of 220-1,000 tons.
In addition, it has acquired three other ``nearly new'' presses and rebuilt an existing 1,000-ton model.
Three of Lebanon's remaining original presses will be replaced within the next 18 months, said Kelly, who described the firm's annual sales as ``approaching $10 million.''