Bulk Molding Compounds Inc. has acquired the bulk molding compound business of Cleveland-based Glastic Corp.
The deal, scheduled to close Aug. 1, will provide West Chicago, Ill.-based BMCI with an additional 10 million pounds of annual compounding capacity. It includes all Glastic BMC formulations, manufacturing equipment, raw materials and customer list, officials said.
``It was one of many product lines we had,'' said Mark DiGiampietro, Glastic vice president and general manager. ``We were a smaller player. Our goal is to be one or two in any market.''
Glastic was its own largest customer and had operated the business for more than 40 years. Last year the compounding business generated $3 million in external sales.
``The Glastic BMC product line is well-recognized within the electrical industry and enjoys a wide number of customer specifications and Underwriters Laboratory approvals,'' BMCI President Larry Nunnery said in a news release.
BMCI initially will integrate manufacturing into plants in Perrysburg, Ohio, and West Chicago. The move affects 19 direct labor employees at Glastic and an undetermined number of salaried workers, DiGiampietro said in a July 16 telephone interview.
Now Glastic will be able to focus on its core business of engineered composite materials and components, DiGiampietro said. He declined to provide further details. Last year Glastic acquired Hope Valley Inc. of North Kingstown, R.I., which beefed up Glastic's fiber-optic technology.
Glastic employs 324 at facilities in Jefferson, Ohio, and Salem, Mich., and at a warehouse in Birmingham, England, that the company is expanding. Glastic has experienced an 18 percent increase in sales in that market this year, according to the company.