Varistar Corp. has diversified further into plastics by acquiring thermoformer T.O. Plastics Inc.
Varistar of Fargo, N.D., already owns PVC pipe producers Northern Pipe Products Inc. and Vinyltech Corp. In total it owns 14 companies in a range of markets such as telecommunications, manufacturing, construction, health services and transportation. Varistar will lump T.O. Plastics in with its manufacturing segment.
T.O. Plastics' chief products are horticultural containers, packaging and components for materials handling and ice machines, according to Varistar Chief Financial Officer Kevin Moug. The Bloomington, Minn., company had sales of $15.7 million for the year ended July 31. It operates plants in Bloomington and Clearwater, Minn., and Hampton, S.C., making a mix of proprietary and custom products.
T.O. Plastics' former owners Charles Goers and Dennis Schultek will continue with the company as president and vice president of sales, respectively. Varistar will run the business, established in 1948, under the name T.O. Plastics. The 195 employees at T.O. Plastics will raise Varistar's total work force to more than 1,600.
Varistar will provide financial strength to help T.O. make acquisitions and expand, Goers said in a news release. Lauris Molbert, Varistar president and chief operating officer, also noted plans to expand in thermoforming through mergers and acquisitions.
Varistar is owned by Nasdaq-traded Otter Tail Power Co.
