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April 12, 1999 02:00 AM

NORSEMAN PLASTICS BUYS RIVAL SCL A-1

Roger Renstrom
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    Norseman Plastics Ltd. has acquired SCL A-1 Plastics Ltd. for C$2.5 million (US$1.7 million) and will operate the business independently as a wholly owned subsidiary.

    Both operations are located in Ontario. Privately owned Norseman is in Rexford. SCL A-1, now under its third owner in four years, is in Brampton.

    Andy Williams, Norseman vice president of finance, said SCL A-1 employs 50 and will maintain its existing name. He confirmed that SCL A-1 had 1998 sales of about C$5.5 million (US$3.7 million).

    General Manager David Fox and other key SCL A-1 management personnel will continue with the business, according to an April 6 news release from seller Simmonds Capital Ltd. of Toronto.

    During 1995, Simmonds Capital acquired A-1 Products of Milton, Ontario, in March, began molding in July and moved A-1 to Brampton in September.

    The operation had seven injection molding machines including a 950-ton Mitsubishi press as of 1996. Williams indicated the business remains at approximately that level.

    Publicly traded Simmonds Capital operated the molding business under subsidiary SCL Electronics Ltd.

    Simmonds Capital has annual sales of about C$50 million (US$33.3 million) from contract manufacturing, electronics product distribution, wireless communications and venture capital investment, Chief Executive Officer John Simmonds said in a telephone interview.

    Plastics News' list of North American injection molders estimated that Norseman had sales of US$31.8 million for the year ending May 31, 1997, and operated 31 presses.

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