Carolina Precision Plastics LLC has acquired the assets of ATP Plastics Inc.'s health and cosmetics division, and will decide in a few weeks which of its expanded number of plants it will keep open.
Then it will take about 90 days to consolidate, Carolina President and CEO Brian Tauber said in a July 9 telephone interview. Until a decision is made, Carolina will operate all facilities.
Carolina on July 7 acquired the ATP assets, which comprise three plants. Prior to the deal, Carolina operated three of its own facilities. The combined businesses would have annual sales exceeding $70 million. Tauber said ATP Health & Beauty Care unit's sales this year are forecast at about $40 million.
ATP Health is a leader in glycol-modified PET heavy-wall jars, compacts, deodorant sticks and flip-top caps. Tauber said the firm's attractions include experience in heavy PET molding, metalizing capacity in China, strength in compacts, and a comprehensive design and development team, which Carolina lacked.
Carolina molds for a variety of consumer markets, including cosmetics and fragrance, lipstick, food and beverage, lip balm, pharmaceutical, pens and markers, automotive and industrial. Its plants are in Greensboro and Asheboro, N.C.; and Suzhou, China.
Its processes include high-cavitation and precision injection molding, bi-injection molding, injection and extrusion blow molding and various decorating techniques. Including the new assets, Carolina has more than 465,000 square feet of manufacturing space.
ATP Health's Stratford, Conn., plant specializes in heavy-wall PETG molding and decorating. Its focus in Sparta, N.J., is dispensing caps. In Kaiping, China, the firm mainly makes compacts and deodorant sticks.
ATP Health's major customers are Alcan Packaging, L'Oréal, Estée Lauder and Avon. Of those, only Avon has been supplied by Carolina.
Carolina has changed the name under which it operates to CPP Global to reflect the scope of its business.
Going from a single plant in Asheboro, N.C., to a six-facility operation with a global footprint in only three years necessitated a name that better reflects who we are, Carolina Chief Operating Officer Ron Skinner said in a news release.
Carolina expanded in 2006 when it bought Augros Inc., a cosmetics and fragrance packaging producer. It moved the business to Greensboro.
With so much open capacity throughout the industry, we are fortunate, as owner/operators, to be in the financial position to acquire an organization of ATP's quality, Carolina Vice Chairman Jeff Camiener said in the release.
ATP Plastics is a subsidiary of Applied Tech Products of Wayne, Pa.
ATP's other major business was Engineered Rubber & Plastics, which was sold in April 2008 to Blair Capital Partners.