St. Louis-based Plastic Lumber Co. of America LLC is buying Jarold Manufacturing Co., a vacuum forming firm also in St. Louis, for an undisclosed sum.
The deal was expected to close Jan. 31. The company is buying Jarold from a trust that controls the business since the previous owners died about a decade ago, said Brad Urani, Plastic Lumber's chief operating officer, in a Jan. 30 telephone interview.
Plastic Lumber operates out of an 80,000-square-foot plant - a building that is more than large enough to accommodate the additional vacuum forming equipment and the nine Jarold employees, Urani said.
Plastics Lumber officials expect to save money on space and labor and use the firms' combined resources to attract new customers nationally.
Plastic Lumber extrudes 100 percent-recycled high density polyethylene into standard dimensional lumber and I-beam profiles for inexpensive, nonaesthetic uses, Urani said.
``We've carved out a niche. It's a very simple product,'' he said. ``There's no wood grain. They're black and gray boards. We produce large truckloads quickly and cheaply.''
Jarold, a custom vacuum former, serves a completely different market, Urani said. Jarold makes parts for coffee and vending machines, plastic molds for pouring concrete, and other custom shapes.
The only synergies, he said, are that both firms are plastics processors and they will share the same space. Jarold presented a good investment opportunity because it was a long-standing and profitable local company, he said.
Company officials plan to relocate the Jarold equipment into their plant in August. The Jarold management will be retained, Urani said.