Kalm-Forsythe Global Innovations Ltd., a developer of nonmetallic products, has purchased a manufacturer of custom-molded goods and plans to expand the firm into a larger facility and add another production site.
The acquisition of rubber and polyurethane product maker Globe Rubber Works Inc. of Rockland, Mass., moves KFGI into the manufacturing arena. KFGI previously designed parts and turned the projects over to Globe Rubber Works, which served as its manufacturer, for production.
The firm, headquartered in Dallas, now has a strong manufacturing base for its nonmetallic radio frequency identification products and a variety of other goods, according to KFGI President Carl W. Forsythe. No purchase price was disclosed.
KFGI, which was formed three years ago, also will get a new name, he said. The company will become Globe Composite Solutions Ltd. to leverage the Globe name. Forsythe will serve as president and chief executive officer of Globe Composite and Richard Somerville, the former owner of Globe Rubber Works, will become director of research and development.
Globe Composite's first major moves will be to expand its manufacturing operation into a larger facility in the Boston area within the next several months, Forsythe said. ``We've identified one plant and we're in negotiations at this point,'' he said.
It also plans to open a second plant in north Texas in the next 12-18 months, which ultimately will lead to the addition of as many as 100 more employees. That will give it an operation in the center of the country, he said. The company employs about 75 at two plants that span about 35,000 square feet in Rockland.
Globe Composite will remain based in Dallas, according to Forsythe, who added that the firm is committed to staying in the United States.
The acquisition ``will give us more production capacity and better control over meeting development and production timetables,'' Forsythe said.
Globe Rubber Works, formed in 1890, has served as KFGI's exclusive manufacturing partner since 2001. The acquisition is a natural progression of that relationship, Forsythe said.
``This is a great time for our companies to join together so that we're better equipped to meet accelerating demand for innovative composite materials, RFID-related nonmetallic components and other synthetic products that our companies have jointly produced,'' Forsythe said. ``As a result, we expect to nearly double the revenue of the combined company over the next 12 months.''
Together, the two companies had sales in the $7 million range in 2003 and as a combined operation are on course to generate sales of between $10 million and $12 million in 2004.
Globe Composite is concentrating on serving several key markets, including materials handling, military, oil field equipment, industrial and medical. It produces various material-handling components for the U.S. Postal Service, which is a big and growing customer, and makes other products for a diverse group of companies such as General Dynamics Corp., Northrup Grumman Corp., GE Medical Systems, United Air Lines Inc. and Siemens AG.