ADC Telecommunications Inc. has purchased most of the assets of a Minnesota-based injection mold maker, handing ADC its first in-house tooling capabilities.
In mid-January, Minnetonka, Minn.-based ADC bought selected assets of Custom Mold & Design Inc., based in New Hope, Minn. Those assets include the company's building and surrounding land and most of its equipment, said ADC spokesman Chuck Grothaus.
ADC retained the plant's 38 employees. Custom Mold owner Duane Treiber retired after the sale. Terms were not announced.
Custom Mold has become part of ADC's broad-band connectivity group, which accounted for about half of the publicly held company's $3.2 billion in sales last year, Grothaus said. The group, based in Shakopee, Minn., makes a variety of telecommunications-related products, including fiber-optic conduits and jacks for broad-band and networking systems.
The 22,500-square-foot mold shop will design and make molds for many of those products, including fasteners and connectors. The company also performs some die-cast work.
The purchase, Grothaus said, "will improve product control and time to market."
Until January, ADC had outsourced its tooling work to regional mold makers, Grothaus said. Several Minnesota-based tool shops lost business as a result of the acquisition, said one unidentified source. "It was tough for some of them," the source said.
ADC Technologies plans no future expansion in tooling, at least in the short term.
The firm's broad-band connectivity group also has expanded its in-house manufacturing services. Last year, the company added five profile systems to extrude fiber-optic guides to house cabling. The company had outsourced most of that work.