Custom Profile Inc. is buying the plastics profile extrusion business of Bemis Manufacturing Co. and opening a new plant to house the additional business.
Walker, Mich.-based Custom Profile expects sales to increase by about 25 percent through the deal, which will help the company move into new business categories including medical and automotive.
“It's just really a great opportunity for us,” said John Boeschenstein, CEO at Custom Profile. “One, it strengthens our market share of certain customers who are like customers. In addition, it gets us into some new markets. ... We have never been in the medical field before. It gives us a chance to grow into that market and show the industry what we are capable of doing.”
Bemis Manufacturing, of Sheboygan Falls, Wis., is well known for making toilet seats among its wide variety of products. But the company decided to sell off its profile extrusion business.
A broker contacted Custom Profile in February and talks began, Boeschenstein said.
“We found that it was an extremely good fit on both sides. Bemis' No. 1 concern was the customers,” the CEO said, adding the company also “wanted to ensure that their people were taken care of.”
Impacted employees are being given the opportunity to move to Custom Profile in the Grand Rapids, Mich., area or be absorbed into other Bemis positions, Boeschenstein said.
A total of 12 manufacturing lines will be relocated from Bemis to Custom Molding. Ten of those lines will go into a newly leased 75,000-square-foot building in Grand Rapids. This facility is separate from the company's current manufacturing site in Walker, about seven miles away.
“It will give us a chance to locate the Bemis equipment specifically into that new facility. ... Plant one is running extremely well. We won't have to worry about disrupting what we're currently doing,” Boeschenstein said.
Custom Profile will expand its existing business in areas such as office furniture and venture into automotive with the manufacture of products including precision clips for seats and battery covers, cable protectors and “highly engineered profiles.”
The other two lines, the medical portion of the acquired business, will relocate to Custom Profile's Juarez, Mexico, facility.