Chapin Manufacturing Inc. has purchased the fixed assets and real property of custom blow molder Quality Blow Molding Inc.
As a result of the asset purchase agreement, finalized June 29, Chapin has formed a new subsidiary, Chapin Custom Molding Inc. The subsidiary will operate out of QBM's roughly 80,000-square-foot facility in Elyria, Ohio.
Jim Campbell, president and CEO of Batavia, N.Y.-based Chapin Manufacturing, declined to say how much the company spent on the purchase, but said it was "several million for the real property and assets."
"We were just about maxed out on floorspace at the Batavia plant, a 700,000-square-foot facility," Campbell said of the investment.
Chapin Manufacturing primarily serves the lawn and garden market with proprietary products, such as compressed air sprayers. The company has been blow molding pressure vessels and non-pressure tanks and bottles for decades, he said.
"We made a decision that we wanted to start blow molding some larger 12- and 24-volt tanks up to 60 gallons for vehicle-mounted and trailer-mounted sprayers," Campbell said. "This facility has the proper size equipment."
Chapin Custom Molding purchased all of QBM's injection molding and blow molding equipment. This includes more than 30 blow molding machines and a couple of injection molding presses, Campbell said.
The company will be moving in several larger blow molding machines and some additional injection molding machines. Clamping forces on the injection molding presses range between 250-750 tons. Storage and material handling will also be enhanced, he said.
Chapin Manufacturing purchased the business from Ron Matcham, president and owner of QBM. Plastics Machinery Group International Ltd. in Bedford Heights, Ohio, was the broker for the sale.
QBM manufacturered various plastic components for a diverse range of markets such as automotive, appliance, lawn and garden, recreation, and toys. The company ranked No. 97 on Plastics News' annual listing of North American blow molders, with estimated blow molding sales of $7.5 million in 2016.
Going forward, Campbell said Matcham will not be an employee of Chapin Custom Molding and that the former owner has "moved on to other business interests." The on-site general manager for Chapin Custom Molding is now Brian Evertt, who was formerly the plant superintendent at Chapin's Batavia facility.
Nearly all former employees of QBM — approximately 35, Campbell said — were invited to apply for employment at Chapin Custom Molding.
Chapin Custom Molding currently has 30 workers, with plans to more than double that number over the next 12-16 months.
Chapin Manufacturing has four facilities in the United States, with locations in Batavia and Clarence, N.Y.; Coopersville, Mich.; and now Elyria. The company employs more than 300 workers across these locations.
In addition, the company operates two wholly-owned subsidiaries with three locations in China: an export company in Ningbo, plus a joint facility and a mold shop, both located in Taizhou.