Standard Products Co. plans to increase its plastics business by acquiring specialty tubing producer OEM/Miller Corp. of Aurora, Ohio.
OEM/Miller makes corrugated plastic tubing with molded-in end pieces for appliances, automotive and construction. Its sales last year were about $23 million. Standard plans to add OEM/Miller to its Holm Industries Inc. subsidiary, under which it will operate as a separate unit. Holm of Scottsburg, Ind., is a major gasket supplier for refrigerators and other appliances.
The acquisition will broaden Holm's customer base to appliance firms, Ron Roudebush, Standard vice chairman and chief executive officer, said in a news release. The deal also should boost OEM/Miller's sales to the automotive sector, which Standard has long supplied.
``It's a good fit for OEM/Miller to move into automotive quickly,'' Donald Sheley, Standard vice president of finance and chief financial officer, said in a telephone interview from Standard's Dearborn, Mich., head office.
OEM/Miller president and owner Bill Miller said his firm's major business is in appliances and Standard will help it expand in automotive markets. It makes most of its products via a continuous blow molding process. It extrudes resin into a corrugator, then inserts the corrugated part into an injection press where end pieces are molded on.
Typical OEM/Miller products include drain hoses for clothes washers and dishwashers, and auto air ducts and protective covers. The one-piece parts incorporate fittings that allow simplified assembly.
OEM/Miller's main materials are polypropylene, thermoplastic rubber, nylons and polyethylene, Miller said.
Standard expects to finalize the acquisition within two months, it stated in a July 15 news release. Terms were not disclosed.
Standard said it will continue to seek other acquisitions that complement its technologies, but Sheley said his firm is not necessarily focusing on plastics. In addition to Holm's business, Standard makes auto sealing, trim and vibration control systems and its Oliver Rubber subsidiary makes tread rubber and equipment for the truck tire retread industry.