Carclo Engineering plc has expanded its automotive plastics molding capacity with the cash acquisition of Wipac Ltd., an injection molder of vehicle lighting and antennas.
Wipac of Droitwich, England, had sales of £16.3 million ($26.5 million) in the year ended July 31. The firm was owned by Wolseley plc of Buckingham, England.
Carclo paid £2.3 million ($3.75 million) for Wipac, which is being renamed CTP Wipac Ltd. and will be integrated into Carclo's fast-growing CTP technical plastics division in Lichfield, England.
Wipac operates injection presses with up to 500 tons of clamping force at its Droitwich plant. The firm makes components for car headlights, rear-light clusters and antennas.
The Sheffield, England-based firm said the deal strengthens its European automotive customer base with major builders such as Ford Europe, General Motors, Rover and Toyota, said Carclo.
``The new business will extend the ability of CTP to grow in this sector by sharing manufacturing and technical expertise,'' Carclo said in a news release.
The purchase boosts the division's annual sales to more than $146 million.
Carclo said at the end of last year it was seeking new acquisitions among plastics processors with growth prospects.
The company is looking closely at possible takeovers in the United States and has been under pressure from clients in the automotive and pharmaceutical/medical fields to expand there.
Other companies in CTP include injection molders producing precision industrial, electronics, telecommunications, office equipment and consumer product moldings. It has plants in England, Scotland and Wales.