Industrial holding company TriMas Corp. will acquire Innovative Molding Inc. for $27 million in a deal set to close Aug. 1.
Innovative will be integrated into TriMas' Rieke Packaging Systems business, according to a July 28 news release.
Sebastopol, Calif.-based Innovative manufactures specialty plastic closures for bottles and jars for food and nutrition markets.
It makes 360 million caps a year in sizes of 28-120 millimeters, at a pair of 80,000-square-foot plants in Sebastopol and Atkins, Ark., the release said. Sales for its fiscal year ended May 31 were $28 million.
“Innovative Molding fits our strategy in packaging perfectly,” said David Wathen, president and CEO of Bloomfield Hills, Mich.-based TriMas. “[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 a July 28 conference call.
In May, Innovative 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 site in Rohnert Park, Calif., said a spokeswoman for the property owner.
Sherry Lauderbeck, TriMas vice president of investor relations and communications, said Innovative will move into the new campus this fall. She would not comment on arrangements for the Sebastopol plant.
Packaging is one of TriMas' six business segments. Auburn, Ind.-based Rieke makes steel and plastic closure caps, drum and other enclosures, and specialty dispensing systems. The firm diversified from industrial closures into specialty closures a decade ago, Lauderbeck said July 28 by phone.
“About 45 percent of Rieke's business is actually specialty closures ... so this acquisition is an opportunity for them to really move forward,” she said.
TriMas reported second-quarter profit of $17.1 million on sales of $299.7 million.