Rotational molder Meese Orbitron Dunne Co. said it is boosting its West Coast presence through an acquisition and a Southern California plant consolidation.
The division of Saddle Brook, N.J.-based Meese Inc. purchased the assets and good will of American Rotational Molding Group Inc. of Anaheim, Calif. The seller, Paul White, had been American's owner and president since 1989.
Disclosed Jan. 3, the all-cash transaction closed Oct. 26 with an effective date of Oct. 1. Terms were not disclosed.
By late March, landlocked American and a smaller Meese Orbitron Dunne plant in Montebello, Calif., plan to consolidate operations, including five rotomolding machines. The target is a new, 55,000-square-foot facility now being acquired in La Mirada, Calif. The site will have state-of-the-art capabilities, Meese said.
The land and building will cost about $4 million. A developer built the structure as a speculative investment. Tenant improvements and auxiliary systems, including materials-handling equipment and at least two silos, are expected to add $500,000 to the cost.
The 21,000-square-foot Montebello site has 10 employees and one line, Ronald C. Midili, president and chief executive officer of Meese Inc., said in a Jan. 9 interview in Anaheim.
Acquiring another firm and combining operations "gives us a good-size company in one building," Midili said. Meese Inc., an Indiana corporation, does business as Meese Orbitron Dunne.
Gordon Sanden was named general manager of the soon-to-be-combined West Coast operations. An innovative equipment creator, he had been American's vice president.
The new owner intends to maintain American's strong market identity for a few years and perhaps longer as a trade name. American has won numerous awards in Association of Rotational Molders' parts competitions.
American was established in 1957, employs 40 and occupies 26,000 square feet without room to expand. White continues to own the site.
No employment changes are planned at this time.
Meese Orbitron Dunne said the acquisition increased its West Coast capacity by 500 percent.
Equipment moving from Anaheim includes a recently acquired, 7-foot carousel machine; an 81/2-foot, three-arm, biaxial carousel machine; a 9-foot, four-arm, biaxial independent cart machine; and a 17-foot-long rocking oven machine.
Montebello contributes a 14-foot, four-arm Ferry 400 carousel machine.
American reported sales of $3.8 million for the fiscal year ended Nov. 30, 1999.
Meese Orbitron Dunne has grown through acquisitions of four companies and two product lines and substantial 1998 expansions of its Madison, Ind., and Ashtabula, Ohio, plants.
The firm said it has achieved double-digit growth every year since 1993, when Midili began the acquisition strategy.
Meese Orbitron Dunne makes storage, materials-handling and transportation containers, primarily with polyethylene but also using aluminum, canvas, vinyl and stainless steel.
The company expects the addition of American to accelerate the custom division's growth. Currently about 70 percent of Meese Orbitron Dunne's work is proprietary, while 65 percent of American's is custom.
Meese Orbitron Dunne's 1999 sales of $23 million placed it 16th on Plastics News' ranking of North American rotational molders. Before acquiring American, the firm's four plants employed 175 and operated 17 lines. Parent company Tingue, Brown & Co., also of Saddle Brook, had total 1999 sales of $40 million.