Tinicum Capital buys majority of Plano
PLANO, ILL. - A New York investment firm agreed to buy a majority stake in proprietary injection molder Plano Molding Co.
Plano Chairman and Chief Executive Officer Peter Henning will retain a significant but undisclosed ownership in the 75-year-old firm that is best known for its plastic fishing tackle boxes. Tinicum Capital Partners II LP will buy Plano shares from Henning family members not active in management.
Henning said in a telephone interview he expects the Plano-based firm to gain from Tinicum's experience in lean manufacturing. Tinicum's familiarity with other global markets and its financial strength also should make Plano Molding stronger, the companies said.
Henning said he anticipates no major changes as a result of the ownership shift. Plano runs two plants in Illinois, in Sandwich and in Mendota. It closed another plant in Plano in 2004 when it de-emphasized its slumping custom molding business.
Plano Molding's proprietary product lines include gun and archery cases, toolboxes, shelving, Caboodles-brand cosmetic cases and a new line of craft storage products called Creative Options. Henning declined to provide annual sales figures.
Tinicum emphasizes long-term growth in its investments rather than buying and flipping companies for short-term profit. It typically aims for investments ranging from $25 million to $75 million, according to its Web site.
Robert W. Baird & Co. Inc. of Milwaukee acted as financial adviser to Plano Molding in the transaction.
Plastech to lease four plants from JCI
PLYMOUTH, MICH. - Johnson Controls Inc. has inked a deal to turn four of its North American injection molding plants over to Plastech Engineered Products Inc. as its contract manufacturer.
JCI's automotive division, based in Plymouth, has been seeking a way to shift its in-house manufacturing to proprietary products, with an outside supplier taking over production of door panels, floor consoles, overhead parts and visors.
The arrangement announced Feb. 19 turns manufacturing responsibility over to Dearborn, Mich.-based Plastech on April 1, with Plastech leasing the equipment and sites, JCI officials said.
The sites' 2,600 employees will be offered employment with Plastech, officials said. The deal covers plants in Holland, Mich.; Whitby, Ontario; and Ramos Arizpe and Puebla, Mexico. It also extends a supplier business the firms have had since 2001.
Faurecia upgrading plant in Michigan
AUBURN HILLS, MICH. - Auto supplier Faurecia SA will invest more than $4 million to renovate its engineering, technical and injection molding facility in Fraser, Mich., as part of an overall boost to its production capacity in North America.
The Paris-based supplier will receive a $430,000 tax credit to help finance the site improvement, beginning with work on 57,600 square feet of office space for $2.05 million. The firm must remove lead-based paint and asbestos from the 50-year-old building, according to a Feb. 22 news release from the state.
The second phase will add 40,000 square feet of manufacturing and engineering space for $2.25 million. The site will employ 98; some workers will transfer from other facilities.
The firm, with North American headquarters in Auburn Hills, expects more than $1 billion in new business by 2009. The Fraser site already makes parts sent for assembly at just-in-time sites near customers' sites. The plant turns out hybrid metal-plastic carriers for the front-end module, instrument panel and door panels on DaimlerChrysler Corp.'s 2007 Dodge Avenger.
Early-morning fire damages Rihani site
CRANSTON, R.I. - A three-alarm blaze early Feb. 21 caused substantial damage and destroyed a major part of injection molder Rihani Plastics Inc.'s production facility.
The fire started after midnight, said Cranston Assistant Fire Chief James Gumbley. ``A portion of the roof collapsed shortly after we arrived,'' he said, noting that flames shot 30 feet into the air and melted vinyl siding on several nearby homes.
It took three hours to contain the fire to an older part of the complex, where damage was substantial. Gumbley said a newer, two-story section sustained some water and smoke damage.
One Rihani employee, the brother of owner Victor Rihani, suffered burns to his hands but declined medical attention. Gumbley said two employees were in the section where the fire started. Rihani officials were not available for comment.