BENSALEM, PA. (June 4, 6:45 p.m. EDT) — Since its purchase of Flash Plastics in January, Guaranteed Plastics Inc. is continuing to look into more acquisitions or mergers, possibly to be announced at NPE 2000.
Michael Reinecker, former president of Bensalem, Pa.-based Flash and now sales manager for Guaranteed, said demand from an undisclosed customer had led him to look at a merger with Guaranteed. Instead, the businesses chose acquisition. Financial terms were not disclosed.
"Acquiring Flash made more sense as opposed to running two companies," said Jack Fitzgerald, president of Guaranteed, which recycles post-industrial and some post-consumer materials.
Following the acquisition of Flash, Gloucester, N.J.-based Guaranteed developed plans for more deals with smaller, mom-and-pop companies.
"We´re hoping that by showing larger sales and profit growth that we can attract more shareholders, give them a good return and show them we´re a good company," Fitzgerald said.
Also a main catalyst behind Guaranteed´s search for new companies is the company´s attempt to consolidate its niche in the market of recycling engineering resins. Fitzgerald added that with more smaller companies under Guaranteed, which now has 18 employees, the company will have greater purchasing power and more customers come to it exclusively.
"This merger and acquisition thing is new to us," Fitzgerald said. "We´re trying to be the key consolidator in our industry."
In addition to a possible acquisition announcement at NPE, Fitzgerald said the company, at Booth S-809, will demonstrate its e-commerce capabilities with its current Web site, www.scrapplastic.com, and its site still in the works, www.plastictrader.com.
The new site will be an exchange for post-industrial scrap, Fitzgerald said, and it will keep a tight focus of its mission.
"We´re not going to be a jack of all trades, just a jack of this trade," he said.
Fitzgerald and his wife, Theresa Beltley-Fitzgerald, founded Guaranteed in 1995. The company reported 1999 sales of $11.7 million, up from $7.5 million in 1998.