Core Molding Technologies Inc. has expanded its product lines and technologies by acquiring structural foam injection molder Horizon Plastics International Inc.
Founded in 1972, Horizon was one of the first structural foam molders in North America, and owner Brian Read is well known in industry circles, including the former Structural Plastics division of the Plastics Industry Association.
Core, best known for its thermoset sheet molding compounds production and its fiberglass-reinforced plastics molding, paid about $63 million in cash for Horizon. Both companies do a lot of business in large components for diverse industries.
Horizon, based in Cobourg, Ontario, employs about 250 in that city an hour west of Toronto, and in Nuevo León, Mexico. Its sales for its most recent fiscal year were estimated at about $60 million.
Core, with headquarters in Columbus, Ohio, reported sales of $122.6 million for nine months ended Sept. 30. It runs manufacturing plants in Columbus, Gaffney, S.C.; Cincinnati; Winona, Minn., and Matamoros, Mexico, and operates a distribution center in Brownsville, Texas. Its stock price jumped 4.9 percent to $21.88 on Jan. 16, the day the deal was announced.
"Continuing to expand our technology offerings and diversifying our customer base and end-markets are key elements of our growth strategy," noted Core President and CEO Kevin Barnett in a news release.
"[Horizon] is a leader in structural foam and structural web molding and continues to innovate around these molding technologies," Barnett added.
Barnett said beyond new technologies, Horizon brings to the table existing programs with industry-leading customers in several new markets, experienced leadership, a motivated and skilled workforce, and greater geographic reach.
"As a long term Cobourg resident and business owner, future stability of the organization and support of our outstanding technical and production teams was a high priority," said Read, the Horizon CEO and former owner, in a news release.
"I also favored a strategic partner with the scale and technology foundation to continue growing these specialized processes into expanded applications."
