Pioneer Plastics Inc. has acquired Group Tool & Die Inc. and its Illinois locations in Normal and Lexington. Terms were not disclosed.
Eagan, Minn.-based Pioneer viewed Group Tool's engineering, product development and plastics processing capabilities as complementary to Pioneer's custom injection molding and tool-building operations.
``Group is an ideal addition to our long-term strategy in the U.S. as domestic manufacturing demand rebounds in the coming years,'' Minou Hussain, Pioneer chief executive officer, said in a news release.
Pioneer's domestic operations almost double in size with the Sept. 15 cash transaction, Matt Mahmood, Pioneer chief operating officer, said in a telephone interview. Pioneer plans to invest about $2 million for equipment, including energy-efficient injection molding presses, electric discharge machines and computer numerically controlled centers.
The firms project total annual sales exceeding $28 million, Mahmood said. Pioneer's top end markets include precision components for computer and business machines, consumer electronics and telecommunications.
Group Tool machines and reworks electrical parts and industrial switches.
Donald Liming will continue as operations director in Lexington, and George Gilmore, who founded the business in 1969 with his father, plans to retire.
The 44,000-square-foot Lexington site employs 42 and has 28 presses: 16 for thermoplastic injection molding, eight for compression molding and four for bulk molding compound. Officials said they may replace as many as six presses soon.
The 15,000-square-foot Normal site employs 28 to machine gears and parts, and design, make and repair molds.
In Eagan, Pioneer has 14 presses and employs 60, including six mold makers.
Pioneer said it plans to operate the acquired business as a subsidiary under the name Group Tool Inc.
Pioneer, a minority-certified firm, has two subsidiaries: Pioneer Plastech SA de CV in Zapopan, Mexico, which assembles and distributes parts; and Pioneer Plastech Ltd. (HK), which has 32 presses and 350 employees in Shenzhen, China, and a regional office in Hong Kong.