Injection molder Victor Plastics Inc. of Victor, Iowa, has expanded beyond Iowa with the acquisition of Kincses Tool & Molding Corp. in Flora, Miss.
The deal closed Oct. 6. Terms were not disclosed. The Flora plant now operates as a division under the Victor Plastics name.
Tibor Kincses started the operation in 1973 as a tool and die shop. He added injection molding in the early 1980s. Kincses now is retiring. His son, Mike, has been president since 1996.
Mike Kincses said the company built its reputation making close-tolerance tools.
``That isn't always subject to global competition,'' he said Oct. 20 by phone. ``We certainly have built positive working relationships through the years. Automotive is the toughest market to be in. If we can handle automotive, we can handle anything.''
Victor Chief Executive Officer Michael Tryon said he plans to triple the new plant's business within 12 months.
``We want to increase the volume of business and improve it from a performance standpoint,'' Tryon said. He said Victor has been looking for acquisitions, part of a plan put in place in 2004. Kincses gives Victor a platform to build on in the South. Until now, its only molding plants have been in Iowa.
``We've got customers that we serve down in that area,'' Tryon said. ``We could sense with the cost of fuel and [other] logistics, we needed to do something more proactively. We felt it important to get a platform there.''
Kincses has 18 presses, from 55-500 tons. Victor plans to add about five injection presses in the next year, including 300-, 500-, 750- and 900-ton machines and expand to 1,500 and beyond, Tryon said.
Victor also plans to double the plant's space and add 50-100 employees to its current 55 within a year. Kincses has a 40,000-square-foot facility on 20 acres. Victor will make more acquisition announcements in 2007, Tryon said.
``This is just the first acquisition that we've identified and were successful with,'' he said.