Hommer Tool & Mfg. Inc. is buying Romar Mold Inc. and plans to consolidate operations in a building expansion.
Romar and Hommer reached an agreement April 21 after holding discussions since October. Terms were not disclosed. The transaction is slated to close June 1.
Hommer is purchasing Romar's assets and ongoing business, said J.R. Hommer, vice president of the buyer. Hommer is a family-owned maker of custom round components for the injection molding industry and has been adding production of replacement cavities and cores for the processor market.
President and owner Alfred Rominger has operated Romar for more than 30 years and is nearing retirement.
The two businesses are five blocks apart in Arlington Heights.
Romar employs six and provides mold makers with secondary, value-added electronic-discharge-machine processing, engineering and polishing services.
In recent years, the firm stopped making molds and moved into production of precision blocks and cavities. Romar's square-core-cavity work will give Hommer a new capability.
Established in 1983, Hommer employs 35 at its 12,500-square-foot plant. Its annual sales are about $4.5 million.
``We had expansion plans in place two years ago but held back because of the economy,'' Hommer said. Now, operations are ``crammed in the existing building.''
The plant has 10,500 square feet for manufacturing.
Hommer Tool plans to build an 11,000-square-foot addition and bring in Romar's assets by June 2005.