Custom injection molder Carolina Precision Plastics LLC is boosting its cosmetics packaging business by acquiring Augros Inc. of Ronkonkoma, N.Y.
Carolina Precision of Asheboro, N.C., paid an undisclosed amount for Augros' assets effective July 1. The deal raises Carolina Precision's annual sales by about 50 percent, to about $30 million.
``We are fairly new to cosmetics,'' said Carolina Precision President and Chief Executive Officer Brian Tauber in a July 7 telephone interview. ``It will help us expand into a broader range of cosmetics and fragrance packaging. [Augros] is higher-end.''
Augros was a subsidiary of French firm Augros Cosmetics Packaging SA of Colombes, France. Tauber said the parent company is reorganizing under protection from creditors and decided to liquidate its North American assets.
The Augros plant employs about 70 and runs 30 injection presses with clamping forces up to 400 tons. Carolina Precision has 125 employees and 42 presses, the largest being 500 tons, Tauber said.
In addition to cosmetics and fragrances packaging, Augros makes makeup compact cases and powder boxes, new markets for Carolina Precision, Tauber said. Carolina Precision's other key markets are pens and markers, automotive and industrial.
Tauber said Carolina Precision will transfer some of Augros' work to Asheboro, because some of its customers are within a two-hour drive of the North Carolina facility.
Carolina Precision strengthened is cosmetics packaging business last year through an alliance with I-Pack SA of Paris. The French firm is especially strong in design and collaborates with Carolina Precision on U.S. projects. Carolina Precision said cosmetics has been its fastest-growing business, helped in part by production of a new version of Revlon's Super Lustrous lipstick case.
Carolina Precision plans to set up a joint venture in China by the end of the year.
``We recognize the need to offer our customers the option of manufacturing in a low-cost country,'' Tauber said in a news release. ``Our partner ... when combined with our capabilities should provide a tremendous source of overseas production.''
Carolina Precision Chief Operating Officer Ron Skinner said the company is pursuing other acquisitions and regional expansions.
Carolina Precision was formed in 2001 prior to the liquidation of Complex Tooling & Molding Inc. of Boulder, Colo., which had owned the Asheboro operation.