Integral Plastics Group plc is creating a new custom molding business through the £8 million ($12.8 million) acquisition of two British plastics companies: Kestrel Injection Moulders Ltd. and composites processor Hampton Mouldings Ltd.
Greg Mullins and Tim Hearley formed London-based Integral to buy the businesses from Money Controls plc of Royton, England. The buyers are backed by Close Investment Management Ltd., a London venture capital company that is investing £4.5 million ($7.2 million) in the deal.
Integral plans to expand its operations both internally and by acquisition, according to Mullins, its chief executive officer. He said Integral is in talks with another plastics molder, and has its sights on another purchase beyond that.
``The acquisition of Kestrel and Hampton represents the first phase of a strategy to build an international plastics group,'' said Close Investment's Graeme McConnell, who will join the Integral management board.
Kestrel of Plymouth, England, employs 120. It specializes in making components for the United Kingdom telecommunications market, including TV cabinets and speaker casings.
The molder runs more than 30 Toshiba injection presses ranging with clamping forces of 100-650 tons.
Hampton of Tetbury, England, employs 70. It makes glass-reinforced composite products including housings for gas and electricity utility companies. The company uses resin transfer molding and sheet molding composite processes, and also does hand layup of prototypes.
The two firms recorded a combined pretax profit of £1.7 million ($2.7 million) on undisclosed sales in the last financial year.
Mullins said Integral intends to maintain the molders' core business and add new markets, including truck and off-road construction equipment.
Money Controls specializes in cash handling systems. Its disposal of the two plastics molders is the final part of a plan announced in May 1998 to dispose of noncore businesses.