Medical-device molder MedTech Group Inc. has bought a tool shop, gaining its first substantial mold-making capability.
MedTech, based in South Plainfield, N.J., bought Colony Plastic Molds in Middlesex, N.J., for an undisclosed amount of cash, said MedTech President George Blank.
Colony has 10 employees and sales of about $1 million a year, but co-owner Henry Rademacher said sales are down, in part because the shop, like many others, has been hurt by lower-priced overseas competition.
"Many of the independent toolmaking companies are not in a position to employ the latest computer" equipment, Blank said. "We would be in a position to add more technology."
MedTech had a small toolroom that did repairs and built small molds, but Colony will let MedTech make products more quickly and shave as much as 25 percent off product-development time, Blank said.
"The whole driving force is to give the customers ... faster speed to market without having very high premiums," he said.
The two companies have worked together for 20 years, Blank said.
Rademacher and Colony's other owner, Tom Rears, will remain with the company.
The acquisition is MedTech's second expansion in 18 months aimed at broadening its capabilities. It entered a 50-50 joint venture with Synectic Engineering Inc. in Milford, Conn., to create MedTech Design LLC.
Privately held MedTech employs 250. It has about 60 injection and insert molding presses. The firm, which does complete medical-device manufacturing, has plants in South Plainfield and Vega Baja, Puerto Rico. It does not disclose sales figures.