CHICAGO — Applied Tech Products (Booth E13551), formerly SKM Applied Technology Partners, is expanding West with the acquisition of UPT Plastics Inc. of Tempe, Ariz. Terms were not disclosed. UPT is an injection molder of precision components and assemblies for the medical, telecommunications, electronics, consumer and industrial markets.
"This is an excellent fit for us and gives us a presence in the West," Raymond P. Langton, co-founder and chief executive officer of Applied Tech Products, said in a group telephone interview from Tempe. "We see opportunities that we can explore, and we can use the company as a base to go farther. It's only three hours to Mexico," he said.
Langton stressed that UPT's management team will remain in place. Michael Friend remains president and CEO; Phillip Owens stays as vice president of sales.
Owens Packaging Inc., a 5-year-old UPT affiliate, is being integrated into UPT.
Friend said UPT employs 100 and runs 17 presses, with clamping forces of 90-400 tons, at a 2-year-old, 50,000-square-foot plant. He added that the firm is on pace for $15 million in sales this year.
"We find many advantages to being part of a larger company," he said. "We see that customers want to deal with a bigger company. We will be able to represent ourself as a large company, but we will continue to be decentralized."
Langton said UPT adds design, tooling and injection molding capabilities to the overall group.
UPT will join Applied Tech's engineered plastics group, which includes Modern Plastic Technics Inc. of Berlin, N.J., and Cascade Die Mold Inc. of Monticello, Iowa.
The Radnor, Pa.-based parent recently changed its name to Applied Tech Products.
Before the UPT deal, Applied Tech consisted of eight companies with aggregate pro forma annual sales of more than $170 million. The company hopes to reach sales of $500 million within five years through internal growth and additional acquisitions.
In April, Applied Tech Products acquired Nadel Industries LLC of Port Chester, N.Y. It joined a health and beauty-care group that includes Tri-Molded Plastics Inc. of Bay Shore, N.Y., Apollo Packaging Inc. of Bridgeport, Conn., and Sussex Technology Inc. of Sparta, N.J.
The company also owns AK Rubber Products Inc. of Elkhorn, Wis., and Michigan Rubber Products Inc. of Cadillac, Mich.
Langton joined with Saunders, Karp & Megrue, and Harvey & Co. LLC to form the SKM partnership in 1997. Saunders Karp & Megrue is a private equity fund managing more than $1.5 billion. It has completed more than 40 acquisitions since 1985. Merchant bank Harvey & Co. specializes in management-led growth companies.
