Ohio Art Co. plans to shed its plastic injection molding division by selling it to May & Scofield LLC for undisclosed terms.
Ohio Art is selling the unit to devote resources to its toy business and metal lithography operations, said spokesman Ron Como. Ohio Art expects to complete the sale before March 31. The Bryan, Ohio, toy firm's famous brands include Etch A Sketch, Betty Spaghetty and the ETO electronic drawing toy.
The Strydel Diversified Products division runs a plant in Stryker, Ohio, that injection molds components for Ohio Art and outside customers. The division's sales for six months ended July 31 were $2.3 million, down from $2.4 million during the period a year ago. The company cited slower demand in automotive markets, according to a recent quarterly report filed with the Securities and Exchange Commission. The division had an operating loss of $45,000, compared with a loss of $76,000 a year earlier.
Lower toy sales have been hurting Ohio Art. The firm's total sales fell 33 percent during the first six months of its fiscal year to $8.9 million. Its net loss grew to $2.5 million, from the $830,000 loss posted a year earlier.
May & Scofield of Fowlerville, Mich., has several plants doing injection molding, trim and assembly for automotive customers. Key products are plastic assemblies, transportation shift indicators and gearshift knobs. James Junga, vice president of operations, said the purchase will broaden his firm's stake in automotive parts. Strydel's main business is exterior and under-the-hood components. Although May & Scofield mostly focuses on interior systems, it has branched into under-the-hood parts.
May & Scofield does injection molding in Fowlerville, Madison, S.D., and at three plants in Suzhou, Shangai and Dongguan, China, in partnership with Comcraft Group. The Dongguan facility includes mold making for plastics and metal processing.
The firm also makes interior trim and does assembly in Acuna, Mexico. A May & Scofield operation in Basingstoke, England, makes vehicle electronics and does engineering and assembly. In Hong Kong, the firm runs a tool design and engineering support unit.