Continuing a string of acquisitions all in the Toronto area NS Technologies Group Inc. has purchased rotational molder Shirlon Plastics Co. Inc. in Cambridge, Ontario.
It marks the eighth plastics processor acquired by NS Technologies in the last three years.
NS Technologies will consolidate Shirlon operations at the NS headquarters in Milton, Ontario, according to Laurence Goddard, NS sales manager. The company does rotational molding and vacuum forming in Milton, and injection molding in Whitby and Bolton, Ontario.
NS Technologies bought Shirlon Plastics from the Algranti family. Terms were not disclosed. Goddard said the Algrantis have retained Algreen Products Inc., a distributor of rain barrels, composters and residential ponds. NS will continue to supply products to Algreen, which will remain in Cambridge, he said.
In the most recent Plastics News ranking, Shirlon Plastics was the 55th largest rotomolder in North America, with 2010 sales of $5.37 million and a workforce of 36 employees.
The company also does vacuum forming. Its markets include tanks, agricultural products, material handling, storage containers, rain barrels and composters and trash receptacles. In 2010, sales were split about equally between custom and proprietary products, according to PN ranking data.
The purchase of Shirlon moves NS into one of the top 50 rotomolders in North America, the company said in a news release. It did not disclose combined rotomolding sales.
Financing for the deal was provided by NS' majority shareholder, who the company has not identified but said holds business in other plastics processors, including film packaging and extrusion. Osprey Capital Partners, a Toronto-based investment bank, assisted with the deal.
Milton-based thermoformer Custom Vacform Components Inc. began buying other Canadian processors in 2008, starting with a rotomolding plant in Lindsay, Ontario, from Iceland's Promens hf and Urban Images Inc.'s rotomolding operations in Guelph. The following year the company created the NS Technologies Group name for all of the plastics businesses, which it consolidated.
NS followed by purchasing three injection molding companies Horn Plastics Inc. of Whitby, Automatic Plastics Inc. of Pickering and GGS Plastic Engineering Inc. of Bolton and moved them into Horn's plant. Goddard said the company has reopened the GGS injection molding factory in Bolton.
NS also bought the Mitech Ignition injection molding unit in Welland from Pop & Lock Corp., and picked up Alvac Plastics Inc., a thermoformer in Cobourg.
NS Technologies has moved production into larger facilities. NS also has a film extrusion factory in the Toronto area, Goddard said.
Goddard said NS Technologies employs about 160. The firm does not release sales, he said.
So far, all the acquisitions have been in Ontario, but Goddard said NS Technologies officials are not limited to any specific geographical area.
It's just the way it's unfolded, he said. It all comes down to the strategic fit.