Two Kelch Corp. managers have agreed in principle to buy the firm's Aluminum Molds division by late August.
Tom Wachs, Kelch vice president of administration, and Sandy Scaccia, general manager of the division, plan to spend about $3.2 million on the deal. The division has a plant in Cedarburg, Wis., separate from Kelch's headquarters plant there, and a facility in Middlefield, Ohio. It supplies cast-aluminum tooling to the rotational molding industry.
Kelch plans to focus on its injection molding and proprietary products businesses, said Dennis Nourse, president and chief executive officer. He acknowledged in a news release that aluminum tooling has growth opportunities, but said the business ``will be better served by having its own focus.''
Kelch operates custom and proprietary injection molding plants in Cedarburg and Mequon, Wis.; Twinsburg, Ohio; and Lenoir, N.C. Kelch is adding a 60,000-square-foot addition at Lenoir to triple the facility's space.
Its proprietary products include nonautomotive vehicle components, such as steering wheels, caps and gauges. Plastics News estimated Kelch's custom molding sales at about $53 million last year out of total sales of about $64 million. Officials did not confirm the figures or disclose the size of the aluminum molds business.
Kelch originally planned to turn the aluminum molds operation into a wholly owned subsidiary with its own management team. During the restructuring, Scaccia and Wachs said they were interested in buying the business.
A city committee has recommended that Scaccia and Wachs be eligible for a $140,000 loan from Cedarburg and a $740,000 state loan to help them buy the business and keep it in Cedarburg. Scaccia and Wachs were unavailable for comment.