Atlantis Plastics Inc. of Atlanta has nabbed the assets of LaVanture Plastic Extrusion Technologies Inc. and Molded Designs Technology Inc., collectively known as LaVanture Plastics.
Terms were not disclosed. The deal closed Nov. 9.
LaVanture is a family-owned operation with two plants in Elkhart, Ind., one dedicated to injection molding and another focused on profile extrusion. Although current President Steve Fulton will leave to do other things, other managers will remain at the two facilities.
``This acquisition is a natural fit with our existing profile extrusion and injection molding businesses,'' John Geary, vice president and general manager of Atlantis Plastics' Molded Products Group, said in a news release. ``It strengthens our position in the regional recreational vehicle market, while continuing to diversify our current market segments in the Molded Products Group.''
Geary said Atlantis' own profile extrusion operation will benefit from LaVanture's broad resin use. Historically, Atlantis' profile extrusion operation was dedicated to PVC. It operates its Molded Products Group from two facilities in Elkhart, focused on end markets like automotive, weatherstripping, windows and doors, furniture, and marine.
``Atlantis did not have the capabilities in place in its current operations,'' Geary said by telephone Nov. 10.
LaVanture's extrusion operation processes a number of different materials, including ABS, nylon, high density polyethylene and polystyrene. Its end markets include plumbing, lawn and garden, consumer products, furniture, windows and doors, and swimming pools and spas.
``It is the right time to move on,'' former owner Dick LaVanture said in a Nov. 10 telephone interview. ``It's been an interesting 37 years. It's been a lot of fun. We enjoyed the run. I felt that the synergies between us and Atlantis were extremely good. It's going to be a good acquisition for them.''
LaVanture will continue to operate his distribution company, offering products to the recreational vehicle and manufactured housing markets.
LaVanture in 1994 completed construction of a 65,000-square-foot extrusion facility. In 1996, it followed with an expansion and update of its 30,000-square-foot injection molding facility. Through 1997 and 1998, the owners completed additional construction and modernization projects, allowing for new equipment and improved work flow.
The firm reported $2.64 million in 2003 injection molding sales with 22 employees and 12 presses; its profile extrusion operation had estimated sales of $8.5 million with 51 employees and 14 extrusion lines, according to Plastics News' pipe, profile and tubing extruders ranking.
Atlantis reported $21.3 million in its profile extrusion operation for 2003, with 135 employees and 25 extrusion lines. Its injection molding division had sales of $81.3 million, with six plants in Fort Smith, Ark.; Henderson, Ky.; Warren, Ohio; Lavergne, Tenn.; Alamo, Texas; and Jackson, Tenn.
Atlantis officials said LaVanture has been highly profitable in profile extrusion and injection molding for a number of years.
``We expect the acquisition to increase the sales of our Molded Products Group by approximately $12 million in 2005 and be accretive to Atlantis Plastics by 10 cents to 12 cents per fully diluted share,'' Anthony Bova, Atlantis president and chief executive officer, said in a news release.