Automotive injection molder MVP Plastics Inc. purchased a foam fabricator, All-Foam Products Co., earlier this year in a diversification move — both within automotive and outside of that sector.
MVP President and CEO Darrell McNair said All-Foam, in Buffalo Grove, Ill., does some automotive work but also is active in non-automotive markets, such as military and government, packaging and liners for specialized tool boxes. The company handles both open-cell and closed-cell foams.
MVP bought the 10-employee company in February. McNair said MVP moved most of the operation to MVP's headquarters plant in Middlefield, Ohio, and left some of it in Buffalo Grove.
Terms were not disclosed.
“With the uncertainty in the traditional automotive space, you've just got to find ways to add value and diversify at the same time,” McNair said.
All-Foam buys foam and fabricates it to customer specifications, including cutting and bonding. Government clients include the Department of Defense, Department of Homeland Security, Coast Guard, and the U.S. Army and Air Force. McNair said the cushioning foam goes on a range of military applications such as tanks, artillery vehicles and helicopters.
MVP remains centered around automotive molding in Middlefield and a second plant in Brownsville, Texas.
Buying All-Foam does bring new markets to MVP, but it also gives the company a broader reach into automotive, where foam components play an important role in sound dampening.
“There's synergy between [molded] plastics and foam. Its utilization in the automotive space will help add additional value to the plastic parts that we supply to existing customers and additional customers,” McNair said.
MVP and All-Foam shared a few automotive customers, he said.
Two years ago, MVP bought a Michigan design and engineering firm that designs and builds automation, fixtures, machinery and tooling. McNair said that will allow MVP to provide customized design of foam and plastic components.