In another plastics acquisition, Morton Industrial Group Inc. of Morton, Ill., reached a definitive agreement to buy closely held custom injection molder Mid-Central Plastics Inc. of West Des Moines, Iowa.
Closing is scheduled by the end of June, subject to due diligence and funding arrangement, Daryl Lindemann, Morton's chief financial officer, said in a telephone interview. The agreement was announced April 27.
Morton plans to incorporate Mid-Central into its contract plastics division, which consists now of vacuum thermoformer Carroll George Inc. of Northwood, Iowa. Thirty shareholders sold Carroll George to Morton for $8.1 million March 30.
Mid-Central Plastics reported 1997 sales of $28 million using 27 presses, mostly in the range of 350-749 tons, and 1996 sales of $22 million using 25 presses.
The ISO 9002-registered operation employs 220 and uses thermoplastic injection, gas-assisted injection, structural foam and insert molding processes with annual resin throughput of about 14 million pounds. Richard Goreham heads Mid-Central as president and chief executive officer.
Carroll George employs about 350 and mainly makes headliners and interior assemblies of polyurethane foam for agricultural equipment, trucking and off-road vehicle manufacturers such as Caterpillar Inc., Deere & Co. and Case Corp.
At its 118,000-square-foot facility, Carroll George has capabilities in multiple-cavity and rotary thermoforming, plastic line bending, hot-melt laminating and robotic routing and water-jet cutting.
Morton's roots are in supplying sheet metal components and subassemblies for off-highway construction, agricultural and industrial equipment markets.
Its main unit, Morton Metalcraft Co., was established in 1963, employed 941 as of Feb. 1 and has annual sales of about $125 million from design, prototype development, precision toolmaking and fabrication of components for original equipment manufacturers.
Caterpillar and Deere accounted for 85 percent and 89 percent, respectively, of Morton's total sales in the two most-recent fiscal years.
Morton Industrial Group, a Georgia corporation, formed Jan. 20 in a merger with publicly traded MLX Corp., then of Atlanta. Now, William D. Morton is chairman, CEO and president of the business, which trades on the Nasdaq over-the-counter bulletin board and has applied for listing on the Nasdaq Small Cap Market.