Sencorp Inc., which makes thermoforming machines, blister packaging and sealing equipment, has merged with White Systems Inc., a supplier of automated equipment for storage and handling.
White Systems is moving into Sencorp's 155,000-square-foot plant in Hyannis, Mass., on Cape Cod, as White Systems leaves its former headquarters in Kenilworth, N.J.
Both companies were operating out of factories with too much space. The two plants were underutilized, especially because of the current weak economy, said Brian Urban, Sencorp's president and chief executive officer.
Urban also serves as president and CEO of White Systems and a holding company set up to own both firms.
Greg Meikle, chief financial officer for Sencorp, also is CFO of White Systems and the holding company. Another key executive, Jim Tedesco, remains as vice president of sales and marketing for Sencorp.
Urban, Tedesco and Meikle have owned Sencorp since 2004, when they bought the Cape Cod machinery operation from DT Industries Inc. They are backed by Management Capital LLC, an investment firm in Providence, R.I.
Urban said White Systems was one of Management Capital's holdings. The Sencorp executives approached the investment firm about bringing the two companies together, he said.
``From the sidelines, we saw that White was struggling from a management standpoint, and we had available capacity here. We had been looking for acquisitions,'' Urban said.
Urban said Sencorp's thermoforming machinery business is down. ``But in our sealing [machinery] business, we continue to see steady growth,'' he said.
The merger closed in late December. Both companies together employ about 150 about 100 of them in Hyannis.
The companies do not release sales figures.
White Systems makes product-handling systems for industrial warehouses, inventory control and stockrooms. The company invented the mechanical carousels used by dry cleaners to organize clothing, Urban said.
White Systems will continue to maintain a technical support center in New Jersey.
One attractive feature of merging Sencorp and White Systems, according to Urban, is White's dedicated service team of 21 people, who drive company trucks that cover the United States.
``We're going to be able to leverage that with Sencorp products to give service above and beyond what anyone else can offer,'' Urban said.