Quantum Plastics LLC has grown again through acquisition, this time in medical goods.
The Elgin, Ill., company has acquired the medical drinkware product line formerly owned by New ThermoServ Ltd. The purchase included proprietary molds, injection molding machines, auxiliary equipment and a customer list with several major medical device firms. Quantum did not divulge terms of the deal.
ThermoServ, meanwhile, is embarking on a major expansion in its core businesses.
The medical drinkware products bought by Quantum are two-piece, insulated plastic mugs typically included in hospital gift baskets. They can be sold alongside other products in Quantum's Hospitec division. Key products for the division are waste containers to hold spent needles, Safe Keeper multi-gallon storage vaults and wheelchair stabilizing devices such as the Translock latching device.
Quantum will move the purchased assets to its Fort Smith, Ark., factory from ThermoServ's plant in Dallas. Quantum President and CEO Ron Embree said in a phone interview that relocation will begin by the end of 2017 and be complete in the first quarter of 2018.
"We are excited to market this proprietary drinkware through our Hospitec division," Embree noted.
The acquisition is the eighth deal Quantum has made in the last three years and Embree indicated his company is interested in more acquisitions to complement internal growth.
"As with our previous acquisitions, we anticipate this new line to ensure our growing company a stronger foothold in the plastics industry," Embree said.
The sale frees up space in Dallas and allows ThermoServ to focus more on its drinkware and tableware product lines, said ThermoServ President and CEO Tom Neth in a phone interview. He told Plastics News that the medical drinkware business accounted for only about 5 percent of his firm's sales.
ThermoServ will install eight new 430-ton injection presses in Dallas to support its growing drinkware and tableware business. Also to be installed in Dallas are new robotics and in-mold labelling systems.
ThermoServ expanded its core business in late August with the purchase of the Prolon brand of dinnerware from United States Dinnerware Inc. Previously best known for its U.S. production of casual, plastic drinkware, Quantum made the purchase in line with a strategic shift in focus to include casual dinnerware. It opens opportunities to grow into the commercial food service industry that includes restaurants, institutions, military and hospitality markets.
Prolon is compression molded from melamine resin. Prolon has been a major player in the commercial food industry since 1959. Prolon is a U.S. manufacturer with full molding and decorating operations in Port Gibson, Miss.
Molding Business Services of Florence, Mass., advised ThermoServ in the transaction with Quantum. It was the 88th deal MBS helped bring about in injection molding and engineered components markets.
