In a move to boost its long-term stability, Injectronics Inc. has purchased fellow injection molder Gilreath Manufacturing Inc.
Injectronics, a Clinton, Mass.-based molder, anticipates the combined production power of Injectronics and Gilreath will give it the market strength needed as the injection molding industry consolidates.
``We think the $100 million level we'll be at now is the base line you need to be at in terms of critical mass,'' said President Paul Nazzaro in a May 25 telephone interview. ``This certainly puts Injectronics in the retention group.''
Injectronics had about $60 million in annual sales prior to its May 21 purchase of the $40 million, Howell, Mich.-based Gilreath from Leon Tupper and Steve Wojno.
The acquisition, for an undisclosed amount, includes a 110,000-square-foot manufacturing facility that has 230 employees and 33 presses with clamping forces of 33-1,000 tons.
The site also supports Injectronic's future business opportunities, particularly with Ford Motor Co., that require additional manufacturing capacity, Nazzaro said.
Injectronics' only other Midwest manufacturing site, in Wauseon, Ohio, cannot expand. The firm began looking at Gilreath early this year.
Gilreath has a solid reputation. It is a direct supplier of interior trim to Ford Motor Co., making parts for the Ford Escape and Mazda Tribute sport utility vehicles and Crown Victoria sedan. Like Injectronics, though, Gilreath was relatively small for an automotive supplier and faced increased pressure in an industry reducing its supply base. With Injectronics, the facility not only will be part of a larger company with greater reach, it also retains its status as a minority-owned supplier, providing it with another sales hook. Injectronics Chief Executive Officer Carlos Baranano was born in Cuba.
While the acquisition is aimed at making automotive components, Nazzaro said the size boost will provide aid across its customer base. Gilreath's design team, for instance, can extend its reach to an array of products and Injectronics can retain that in-house capability more cost effectively with a larger sales base.
``[Customers] are looking for added horsepower from their suppliers,'' said Tim Scollin, Injectronics' vice president sales and marketing. ``They're looking for suppliers that can help them out, and can't afford to be working with the mom-and-pop shops anymore.''
Injectronics opened a molding facility in Westborough, Mass., in 2003, specifically for the medical industry. It added in-house mold making in 2002. It has added two-shot molding capacity and upgraded equipment in Ohio.
``We're in a position that as the industry began to turn up, we're able to act,'' Nazzaro said.