Custom injection molder Evco Plastics has expanded into the West by acquiring Nevada Tool & Die of Reno, Nev.
The Reno facility gives Evco easy access to California and the West Coast, said Evco President Dale Evans. His firm completed the deal Sept. 30 for Nevada Tool, its sixth custom injection molding facility.
Evans said Evco paid an undisclosed amount of cash for Nevada Tool's assets.
Nevada Tool operates 18 injection presses, with clamping forces to 700 tons, Evans said in a telephone interview from Evco's head office in DeForest, Wis. Nevada Tool mainly molds appliance parts and cosmetic packaging. The latter is a new market for Evco, which does most of its business in appliance, health, automotive, packaging and electrical markets.
Nevada Tool, about one-tenth the size of Evco, will boost Evco's sales to about $51 million a year, Evans said. The Reno operation has excess press capacity and the potential to double its sales, he said.
Evco will upgrade Reno's equipment and administration systems and help it take advantage of Evco's greater purchasing clout. Evans said some presses in Reno might be sold and replaced by new ones. Officials will deliberate a few months before making purchasing decisions.
Evco bought Nevada Tool, which Evans said was profitable, from a group of investors. Paul Shilinsky, former co-owner and president, will continue with Evco as a consultant.
Evans said his firm has three molding plants in DeForest, one in Oshkosh, Wis., and one in Calhoun, Ga. The purchase boosts its press count to 75.
Evco, in business for 34 years, is ISO 9002-certified. In 1996 it added a Class 100,000 clean room to one of its DeForest plants. The firm trained 30 workers for two years to run the $1.5 million medical molding plant.