BLOOMFIELD HILLS, MICH. (July 28, 10:50 p.m. ET) — Industrial holding company TriMas Corp. will acquire Innovative Molding Inc. for $27 million. The deal is to close Aug. 1, when Innovative Molding will be integrated into TriMas' Rieke Packaging Systems business, according to a July 28 news release.
Sebastopol, Calif.-based Innovative Molding makes specialty plastic closures for bottles and jars for the food and nutrition industries. According to the release, Innovative Molding manufacturers about 360 million caps per year ranging in size from 28-120mm
The company has a pair of 80,000-square-foot plants in Sebastopol and Atkins, Ark. It had $28 million in sales for the fiscal year that ended May 31, according to the release.
“Innovative Molding fits our strategy in packaging perfectly,” David Wathen, president and CEO of Bloomfield Hills, Mich.-based TriMas, said in a July 28 earnings conference call. “[It has] unique solutions, strong intellectual property protection, a track record of continuous growth and people who are innovative, dedicated, and good at their jobs.
“For Rieke, it increases the content in food applications, which is a growing end market, and we have the ability to leverage Rieke's global footprint and manufacturing costs,” he said.
In May, Innovative Molding signed a five-year lease for 120,000 square feet of production, warehouse, design and administration space in a former Hewlett-Packard and Agilent Technologies facility now called Sonoma Mountain Village in Rohnert Park, Calif., a spokeswoman for the property owner confirmed.
TriMas fully supports the expansion, Sherry Lauderbeck, vice president of investor relations and communications, said in a July 28 telephone interview. She did not know what arrangements had been made for the Sebastopol plant, but said Innovative Molding's move from the old to the new campus should occur this fall.
TriMas is organized into six business segments: packaging; energy; aerospace and defense; engineered components; Cequent Asia Pacific and Cequent North America. TriMas employs 4,000 at 60 facilities in 11 countries.
Auburn, Ind.-based Rieke Corp. manufactures steel and plastic closure caps; drum enclosures; ring and lever closures; and specialty dispensing systems.
Although Rieke has a reputation for making industrial closures, the company diversified into specialty closures a decade ago, Lauderbeck said.
“About 45 percent of Rieke's business is actually specialty closures vs. industrial closures, so this acquisition is an opportunity for them to really move forward in the food and nutrition industries.” She said.
TriMas reported second-quarter profit of $17.1 million on sales of $299.7 million, compared to profit of $15.2 million on sales of $252.1 million for the year-ago period.