CIMA Plastics Corp. has a new sister company that will help it expand its markets and its production footprint.
CIMA's parent company, KPI Holding Co., has acquired Kamco Plastics Inc. for an undisclosed amount. The deal, announced Nov. 15, will strengthen both custom injection molders, the firms said.
``This is not a situation where they're looking at closing a plant or shutting something down,'' said Darrell Butler, managing director of Billow Butler & Co. LLC, which coordinated the Kamco sale.
KPI will take on Kamco's name as part of the acquisition.
Kamco owner Norb Kaiser wanted to retire after 35 years running the Schaumburg, Ill.-based company, Butler said. The sale to KPI will allow a smooth transition that will also continue full production at the company.
Kamco, which has a large client base in the appliance and electronics industries, also owns a plant in Reynosa, Mexico.
Kamco and CIMA will continue operating as separate entities for the next few years, but the companies will explore ways to work together, including accessing Kamco's Mexican operations for CIMA customers.
CIMA's owner, meanwhile, was looking for opportunities to diversify and add production in Mexico, said KPI Chairwoman Alicia Campos, in a news release. The West Chicago, Ill., firm has a large customer base in the auto and electronics industries.
Both Kamco and CIMA have in-mold decorating, two-shot molding and assembly capabilities. Kamco also has its own tooling operations and structural foam molding while CIMA adds painting, laser engraving and pad printing.