Shaw Development LLC has bought one of its suppliers injection molder Gulf Coast Mold & Tool of Naples, Fla.
No purchase price was disclosed in the deal. Bonita Springs, Fla.-based Shaw supplies fluid-management systems for heavy-duty commercial and military vehicles and had been a Gulf Coast Mold customer for more than 10 years, Shaw officials said in an Aug. 4 news release.
Shaw currently accounts for about half of Gulf Coast's annual sales, Shaw Vice President James Driscoll added in a telephone interview.
We thought the acquisition was in the best long-term interest of both businesses, Driscoll said.
Our customers are expecting us to vertically integrate, to invest and increase our product offerings, Shaw President Kevin Hawkesworth added in the release. This acquisition provides those strategic benefits when combined with our expertise in product development.
Gulf Coast Mold supplies Shaw with fuel filler caps and other parts for oil systems. Gulf Coast Mold, founded in 1994, also does work in mold repair, hot stamping, pad printing and assembly.
Shaw is buying Gulf Coast Mold from the Shaw family, which has no relation to Shaw Development. Gulf Coast Mold President Ralph Shaw is moving on to a new business, while his son Dan will remain with the firm, Driscoll said.
Gulf Coast Mold operates 17 injection molding machines with clamping forces of 28-230 tons in a 10,000-square-foot manufacturing space. The firm recently cut its workforce from 12 to five. Driscoll said Shaw hopes to rehire employees as the economy improves. He declined to provide annual sales data for Gulf Coast Mold.
Shaw eventually wants to relocate the Gulf Coast Mold business from Naples to Bonita Springs, which is about 15 miles away, but Driscoll said Shaw has no firm timetable for taking that step. Gulf Coast Mold also will continue to sell to other customers, rather than becoming exclusive to Shaw.
Our intention is to grow that part of the business, Driscoll said.
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