Newly formed SimRidge Technologies of New Braunfels, Texas, acquired Huck Jacobson Plastics Group from an Alcoa Inc. subsidiary in a leveraged buyout June 12. Terms were not disclosed.
Gary Simons and Hollis Wooldridge own a majority of the limited partnership and obtained funding from the San Antonio branch of Wells Fargo Bank. Simons is SimRidge president and financial overseer, and Wooldridge is vice president of operations.
The transaction maintains 300 jobs at three custom injection molding plants.
The principals adopted a conservative approach in making the acquisition and factored the economy's softness into projections, Wooldridge said in a telephone interview. Each plant had experienced a layoff of about 10 percent in April. Negotiations took about a year.
SimRidge has 36 presses at the 116,000-square-foot New Braunfels site, 27 at the 70,000-square-foot Sanford, N.C., plant and 24 at the 50,000-square-foot Tempe, Ariz., facility. Clamping forces range from 50-1,000 tons.
The firm's technical center in New Braunfels will handle most mold making, design and engineering. SimRidge also offers hot-stamping, pad-printing and assembly services.
Wooldridge said consumer products and computers are the firm's largest markets. A QS-9000 rating in New Braunfels is expected to increase the firm's automotive segment, now its smallest. All three plants have ISO 9001 registrations.
In New Braunfels, Simons was controller, and Wooldridge was general manager prior to the transaction. The injection molding plants had reported within Alcoa's Huck International unit in Tucson, Ariz. Huck primarily makes metal fasteners.
In a June 1998 cash deal, founder Harvey Jacobson sold three plastics and three metal processing plants to Cordant Technologies Inc. of Ogden, Utah, with Cordant subsidiary Huck International managing the businesses.
In May 2000, Pittsburgh-based Alcoa purchased Cordant. It was not interested in retaining the processing plants.