Renaissance Plastics Co. has bought its second operating business, injection molder Ultra Tool & Plastics Inc. of Amherst, N.Y.
The deal came about six weeks after Renaissance acquired its first business, Nylomold Corp. of Rochester, N.Y. Officials did not disclose terms of either deal.
Renaissance of Hudson, Ohio, is a portfolio company set up this summer by management and Key Equity Capital, a unit of Cleveland-based KeyCorp, a banking and financial services company.
Renaissance plans to buy several more molding companies to become a full-service molder and mold builder, President Joseph Betro said in a Nov. 5 telephone interview.
Betro said Nylomold, formerly a family-owned firm, has annual sales of about $15 million. It specializes in high-precision molding of engineering materials for medical, vision-care and office equipment markets. It has more than 40 presses, with clamping forces to 450 tons, plus a tool shop. Betro said it has a Class 10,000 clean room and does insert molding.
Ultra Tool had sales of $34 million last year. It runs 54 presses with clamping forces to 1,000 tons and has tool shops at two plants in Amherst. It has over-molding and gas-assisted molding capabilities and mainly supplies automotive, consumer-product and industrial customers. Renaissance completed its purchase Oct. 30 from Robert Ljungberg, who decided to retire.
Renaissance is buying ``best in class'' molding operations and rolling them into a single company to provide turnkey services to original equipment manufacturers, Betro said. As OEMs outsource more work, many molders can't handle the extra demands, creating a gap in the marketplace, he added.
Renaissance will invest an undisclosed amount in its new businesses to keep abreast of advanced technology and productivity. Betro said the firm now is focusing on injection molding but it also will acquire blow molding and structural foam molding companies.
Nylomold customers include Bausch & Lomb, Eastman Kodak and Xerox Corp. General Motors Corp. is a major customer of Ultra Tool.
Key Capital helped finance and structure the Renaissance acquisitions. It provides equity capital for leveraged acquisitions and expansion financing to midsize companies.