An investor group led by Doug Mulay and several other industry veterans has purchased Paramount Plastics Inc., a custom injection molder in Lockport, Ill.
Mulay said Larry Scales, who founded Paramount in 1990, remains in an advisory capacity and is part of the ownership group.
The five owners have more than 130 years of combined plastics experience, said Mulay, who started working at his family's Mulay Plastics Inc. as a teenager.
Mulay said that, instead of looking for financial buyers such as private equity, Scales preferred to sell to owner/operators.
He wanted operators, people who would care about the business, who understood the challenges in plastics and the competitiveness of it, Mulay said.
Terms were not disclosed. The company has been renamed Paramount Plastics LLC.
Paramount employs about 100 people and runs 24 injection molding machines mostly Sandretto and Engel presses. The machines range in clamping force from 60-2,000 tons.
The company supplies the markets of automotive, appliance and industrial products markets, Mulay said. That includes Tier 1 and Tier 2 automotive work. Paramount is certified under quality standards of QS 9000 and the automotive industry's TS 16949.
Paramount does gas-assisted molding and in-mold labeling, as well as assembly and finishing work such as pad printing and ultrasonic welding. Molding engineering resins is a core strength, Mulay said.
Paramount Plastics is an outstanding company, a great company. The only thing that it really needed was a strong sales and marketing group who were also people involved in the business. Today, there are a lot of financial buyers, and financial buyers generally come in and don't know the business as well as people that have been in the industry, Mulay said.
Paramount has grown over the years. In 2000, the company expanded from 16,000 square feet to its current 130,000 square feet. Mulay would not provide sales, though he said the molder has been profitable and financially stable.
This company has a well-established, absolutely wonderful reputation in the industry, that was just at the point where the owner wanted to pull back a little bit, but still wants to stay involved, Mulay said.
In addition to Mulay and Scales, the ownership team includes Bob Simpson, president of manufacturers' sales agency Jay Berwanger Inc. in Downers Grove, Ill.; Simpson's son, Matt Simpson; and Ken Swanick.
Mulay is president. Swanick is the vice president of operations. Matt Simpson will head up sales. Scales also will be involved in running the company.
His strength is in engineering, tooling and, of course, current customer relations, Mulay said.
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