Brookdale Plastics Inc. is doubling its heavy-gauge thermoforming capabilities with the acquisition of Plastic Industries Inc.
Terms of the acquisition, which should be complete by March 31, were not disclosed.
``Plastic Industries is very good at customized solutions,'' Robert Kramer, president and owner of Brookdale, said in a telephone interview. ``They use less-sophistication, less-expensive techniques to solve problems. The unsophisticated methods employed to make sophisticated parts is a skill that makes this a perfect marriage.''
During an 18-year period, the two firms, located only 31 miles apart, did business together and competed in some of the same end markets.
``They were on the horizon as a friend and as a threat,'' Kramer said. Brookdale is based in Plymouth, Minn., and Plastic Industries is in Hugo, Minn.
Brookdale, which started business in 1963 as a thin-gauge thermoformer, entered the heavy-gauge market about six years ago.
``Brookdale has good technology in heavy-gauge thermoforming and it is very good quality,'' Kramer said. ``We need help in approaching things in less-than-orthodox ways. Often we see solutions in terms of what works for thin-gauge thermoforming.''
Brookdale serves the point-of-purchase, consumer packaging, medical and cosmetic industries, and provides stock packaging for electronics, sporting goods and hardware.
The company also assembles point-of purchase displays.
In its 15,000-square-foot contract packaging department, the firm performs radio frequency sealing and makes blister packaging.
Brookdale operates nine lines and employs 55. Last year, it reported sales of $7.5 million.
Brookdale thermoforms materials including PVC, ABS, polyethylene and glycol-modified PET, in sheet thicknesses of 71/2 mils to one-quarter inch.
Acquiring Plastic Industries' customer base will contribute to Brookdale's goal to reach $12 million in sales by the end of 2000. The firm has sales representatives throughout the Midwest and Southeast.
Plastic Industries runs six heavy-gauge thermoforming lines and employs 12. With sales of $2 million last year, the company serves the agricultural, industrial, original equipment manufacturer, electronic, sports and point-of-purchase display markets.
Brookdale plans to rename Plastic Industries' facility Brookdale Plastics Inc./Wagener Facility as a tribute to Terry Wagener, owner of Plastic Industries, and his 20 years in the industry.
The company will use the facility as a product development site, concentrating on heavy-gauge thermoforming. The plant will thermoform products and do research and development work.