Engineered Plastic Components Inc. plans to expand by purchasing another custom molder in Iowa.
EPC has agreed to buy the assets and goodwill of Pella Plastics for an undisclosed amount. EPC expects to complete the deal in mid-January.
Pella Plastics in Pella, Iowa, molds for appliance, consumer goods and automotive customers at two plants in Pella and one in New Hope, Tenn., EPC President and owner Reza Kargarzadeh said in a telephone interview. EPC serves appliance, auto and agricultural markets.
Pella's annual sales of about $30 million will boost EPC's total to $40 million when the deal is finalized. Pella employs about 350.
Kargarzadeh said he will invest about $1.4 million to expand EPC's plant in Grinnell, Iowa, by 50 percent to 120,000 square feet. EPC will move some of Pella Plastics' production to Grinnell by the third quarter of 2003, boosting employment there to 200. Kargarzadeh would not confirm a local newspaper report that operations in Pella will be scaled back or shut down.
The two companies have some common customers supporting the acquisition that are willing to sign long-term contracts with EPC, EPC said in a Nov. 11 news release.
Pella operates 44 presses, the largest of which has a clamping force of 950 tons. EPC's biggest press is 2,500 tons.