Discas Inc. and Beres Industries Inc. plan to merge to create a more diverse injection molding company.
Beres President and Chief Executive Officer Charles Beres Jr. said in a telephone interview that he expects to complete the deal by June, following shareholder approvals.
Discas makes plastic and rubber compounds and injection molds proprietary and custom products for horticulture, packaging, footwear, military, automotive and other industries. Beres, based in Lakewood, N.J., makes injection molds and operates injection presses for computer ribbon cartridges and other custom molding.
Tom Tomaszek, Discas' vice president of sales and business development, said Beres' toolmaking capabilities are a key attraction. Discas owns about 80 molds, mainly for seasonal, proprietary products.
An in-house mold shop will help it cut maintenance costs and time, he said.
Charles Beres said Discas' nursery container business will benefit his operation. The container business has high growth potential and Beres can help it improve its efficiency. Beres started out as a tool builder in 1960. Discas' compounding abilities can help support Beres' molding business, Tomaszek added.
The firms announced Feb. 10 that they agreed to a share exchange that would give Beres about 35 percent ownership of the new company, which will retain the Discas name. Beres shareholders will get one Discas share for 6.67 Beres shares. Charles Beres estimated the value of the exchange at about $1.8 million.
Discas will relocate its Christie Products subsidiary, which molds nursery containers in Kenilworth, N.J., to Beres' Lakewood facility in about a month.
Lakewood now has 13 injection molding machines with clamping forces of up to 400 tons. After the move it will have about 20 with clamping forces to 700 tons. Tomaszek said Discas will close the Kenilworth facility and sell any presses it does not move to Lakewood.
The combined companies will have sales of about $10 million this year, estimated Tomaszek.