Ashland, Ohio-based Hedstrom Plastics has purchased another Ohio rotational molder, Diamond Plastics Inc. Terms of the deal were not disclosed.
Hedstrom, which operates as Ball, Bounce and Sport Inc., bought Diamond from James Long, who founded the company in 1989 with several other people.
Long in 1999 bought out the other owners and had been Diamond's sole owner ever since, said John McWilliams, vice president of sales at Diamond.
Hedstrom is running out of space at its custom rotomolding factory in Ashland, said Mike Kelly, the firm's chief financial officer.
Hedstrom employs 100 people and runs 12 rotomolding machines in Ashland.
Diamond runs eight machines and employs 35 people.
Each plant has one computer numerically controlled router to trim parts.
First of all, our capacity is getting highly utilized in our Ashland facility, Kelly said.
Buying Diamond also will help Hedstrom diversify into new markets and serve customers in the Midwest, specifically Indiana, Illinois and Missouri, he said.
Hedstrom will continue to operate Diamond's factory in Dunkirk, Ohio, he said. Our intention is to blow the roof off of both facilities, Kelly said.
Both companies are listed in Plastics News' rotomolders ranking. Their combined sales will be about $17 million.
Hedstrom Plastics is owned by a group of veteran managers, who bought the Ashland rotomolding plant in 2004, after toy and swing set maker Hedstrom Corp. shut down.
The Ashland plant used to rotomold vinyl play balls, but after that work was moved to China, the factory focused on custom molding of industrial products.
Kelly said the marine market has been growing and squeezing capacity including a line of floating docks called Dewdocks.
Hedstrom molds components for the docks and handles all U.S. manufacturing and distribution.
Other marine products include protective boat fenders, sold through major outdoor retailers.
Both companies serve a diverse range of markets, including enclosures and housings; recreational and sporting goods; medical; agricultural; and toys and playground equipment.
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