Diversified Plastics Inc. has acquired the assets of Pacific Plastics Injection Molding, extending its geographic presence to the West Coast and broadening end markets.
The parties completed the transaction Dec. 10 and announced the deal Dec. 17. Terms were not disclosed.
Kevin Hogan, Diversified Plastics CEO, said the acquisition will provide synergy with Diversified's existing services and customer base.
Pacific Plastics' injection molding, product design, in-house and off-shore mold making and assembly and packaging operations primarily serve customers in the consumer product, biomedical, recreational and safety device markets. President Jae English has guided the business for three decades.
Diversified Plastics' injection molding and contract manufacturing services focus on the medical device, filtration, aerospace and industrial markets.
Employee-owned Diversified Plastics is located in Brooklyn Park, Minn., a suburb of Minneapolis. Pacific Plastics is based in Vista, Calif., near San Diego.
"Our strategic revenue growth initiative includes expanding industries, addition of new industries as well as accelerated sales," said Annette Lund, Diversified Plastics vice president. "PPIM fulfills these requirements nicely."
Pacific Plastics employs 34 including two mold makers, leases 18,000 square feet and operates 11 hydraulic injection molding machines including three Toyos, two Fortunes and two Shinwa Siekis with clamping forces of 33-500 tons. Pacific Plastics projects 2018 sales of $4 million.
The company has two clean cells available for particle-free molding.
The California business started in 1980 as Prototype Model and Mold. English acquired the firm in 1988 and, several years later, transitioned to the s-corporation J.A. English II doing business as Pacific Plastics Injection Molding.
In July, Pacific Plastics retained a mergers-and-acquisitions group to find a strategic buyer willing to allow the Vista site to continue operating.
Numerous conversations took place with potential buyers prior to the recent agreement, said Rob Gilman, Pacific Plastics general manager and an equity holder for several years.
Diversified Plastics implemented an employee stock ownership plan in November 2011. Gilman said Pacific Plastics employees will qualify for the ESOP after a one-year vesting period and could become shareholders of the parent corporation.
Gilman said the businesses share a similar culture and that English will work with Diversified's management and the Pacific Plastics team for a smooth transition.
In addition to Gilman, the Pacific Plastics team includes Lucy Huynh, controller, and Roger Vang, chief financial officer.
Founded in 1977, Diversified Plastics employs 80, occupies 53,000 square feet and projects 2018 sales of $15 million prior to the Pacific Plastics acquisition ? which is its first.
Diversified has Class 100,000 clean rooms of 600 and 350 square feet and two environmentally controlled rooms: 4,500 square feet for injection molding and 1,300 square feet for product assembly. Diversified operates 19 presses of 55-610 tons including six Van Dorns and five Toshibas.
In addition, Diversified has invested in additive manufacturing equipment such as a Stratasys Ltd. Objet260 PolyJet Connex 3D printer.
In October, Diversified Plastics said it joined the Carbon Production Network gaining access to the advanced Digital-Light-Synthesis and Continuous-Liquid-Interface-Production technologies of Carbon Inc. of Redwood City, Calif., for manufacturing prototypes and end-use parts.
Diversified and its new Pacific Plastics division plan to exhibit jointly under the Diversified banner at the UBM Advanced Manufacturing trade shows Feb. 5-7. Each firm has a long history of exhibiting separately at the annual event in Anaheim, Calif.
