IPL Inc. will boost its automotive parts business by acquiring the injection molding assets of Prelude Plastic Products Corp. of Windsor, Ontario.
The strategic acquisition on the Canada-U.S. border should boost IPL's sales by about C$12 million (US$7.8 million) in the first year IPL owns the operation, estimated IPL President and Chief Executive Officer Julien Metivier in a Dec. 9 news release. The Windsor plant will be IPL's first in the heart of the auto industry in Michigan and southern Ontario and will complement its sales and engineering office in Detroit.
Prelude has several presses up to 1,500 tons, and IPL will increase capacity by transferring some large-tonnage machines from its main molding shop in Saint-Damien, Quebec.
Jean-Yves Bacle, IPL vice president of materials handling and custom molding division, said the IPL Prelude Corp. operation will have about 10 presses by spring, with a total clamping force of as much as 10,000 tons. IPL also will expand Windsor's manufacturing and warehouse space.
IPL is expanding its Saint-Damien plant and will invest a few million dollars in midsize presses sourced from Husky Injection Molding Systems Ltd. and other suppliers to boost capacity for industrial containers and other products. The program follows a major expansion 18 months ago when IPL bought 10 new presses, boosting its count to more than 50.
Privately held Prelude has a sister firm that does tool and die work. That firm was not included in IPL's deal. Bacle would not disclose terms of the injection molding purchase, which IPL expects to finalize by the end of the year. The molding operation employs about 40.
Bacle claims IPL's auto parts sales have been growing 30-40 percent annually, although he did not disclose actual figures. It mainly sells to Tier 1 suppliers and makes a range of interior, exterior and under-the-hood parts.
IPL's annual sales exceed C$110 million (US$71.5 million).