United Plastics Group Inc. announced June 5 that it is acquiring OR Plastics Inc. in an effort to build a national and global production base. Westmont, Ill.-based United, which manufactures a variety of products for the electronics, medical, consumer and industrial markets, will gain OR's 40,000-square-foot plant in Brooksville, Fla., with 19 injection molding machines and 85-100 employees.
Financial terms for the acquisition were not disclosed.
William Kriss, president and chief executive officer for United, said OR Plastics will be blended into United's consumer industrial group, which includes plants from previous acquisitions in Kentucky, Massachusetts and Illinois.
"What we gain is the strategic manufacturing location in the Southeast to service current customers and attract new customers," Kriss said.
He did not identify the customers.
Shawn Okopal, president of OR Plastics, agreed that the location is attractive because it serves customers of both companies. He added that the companies are "a good fit."
Kriss said United doesn't plan to cut jobs.
"If anything, we expect to grow substantially," he said.
In September, privately held and then-newly formed United began its quest for acquisitions by buying the assets of Hanson Group Ltd. of Ludlow, Mass., and Kiehl Engineering Co. of Bensenville, Ill., with the help of its financial owner, Aurora Capital Group LP. The firms operated autonomously until June 1, when they were integrated into United's manufacturing operations, Kriss said.
United promised more acquisitions on the heels of the OR deal: six to eight by the end of the year, including one by the end of June. The company wants to build a domestic and international base in the electronics, medical, consumer and industrial markets.
Within those markets, Kriss said, United's operations use different processes, mostly injection molding, and various resins, especially engineering resins. He added that all of the acquisitions will manufacture for those end markets, and each division will be centrally controlled.
Kriss expects United's annual sales to soar to more than $250 million, aided by at least one international operation, by the end of 2000. Sales for 1999 were about $100 million, with 900 employees and four plants, he said.
Aurora Capital manages $764 million in funds, according to an Aurora spokesperson.
OR Plastics, which is based in Brooksville, was founded in 1977. Plastics News' 1999 rankings of injection molders listed OR Plastics' 1998 molding sales as $6.1 million.