In an effort to bolster its customer base in the point-of-purchase industry, Hastings, Minn.-based Intek Plastics Inc. purchased custom profile extruder Elite Plastic Corp. in Hawthorne, N.J.
Terms of the deal, which became final March 14, were not disclosed.
Intek officials declined to say how many workers are employed at Elite, but Rob Tracy, Intek's president and chief executive officer, did say that the Elite plant is 25,000 square feet.
``They've got a real strong position in the point-of-purchase market with some key customers,'' Tracy said, in a March 19 telephone interview. ``We've looked at a lot of different markets for growth.
``Point-of-purchase is appealing because it is growing, relatively recession-proof, and it matches fairly well with some of our core competencies around needing short to midsized runs of custom profile plastic extrusions.
``It just seems like a natural fit for us,'' Tracy said.
In addition to point-of-purchase displays, Intek products include window and door components, gaskets for the refrigeration and electronics industries, and a dasher board component for hockey rinks, among other custom profiles.
The company processes PVC, ABS, polycarbonate, thermoplastic elastomers including thermoplastic vulcanizates, and other plastics.
One year ago, Westport, Conn.-based investment firm Private Equity Capital Corp. signed a letter of intent to acquire Intek. However, changes in market conditions prompted the two parties to nix the deal, according to Tracy.
In addition to the new customers, the Elite acquisition will give Intek more material processing capabilities.
Tracy, a proponent of lean manufacturing principles for the past decade, said he already has workers in place at the Elite facility to begin the fat-trimming process in Hawthorne.