Creative Liquid Coatings Inc. (CLC) has acquired the assets of CK Technologies (CKT), a major but struggling unit of Cascade Engineering Inc. that injection molds parts for commercial trucks and buses.
In the June 3 deal, CLC gains four plants: Montpelier, Ohio; Grand Prairie and Brownsville, Texas; and Mount Airy, N.C. Also included are 16 injection presses with clamping forces of 500 to 5,000 tons, automated paint finishing lines and advanced assembly capabilities, CLC said in a July 6 news release.
CLC President and CEO Stephen Geist said by email he intends to boost operations right away. He's already added three presses to the Ohio facility and has two 4,500-ton Milacrons on order for that plant, due in the fourth quarter of this year and first quarter of next year.
"We will be putting more machines in Texas next year for sure," he added. "The plan is to quickly bring in new machines and make significant investments to stabilize the operation and meet the needs of the growing book of business."
The deal will help CLC's total sales approach $400 million. Even before the acquisition, CLC had already booked about $200 million in business for 2023. With the acquisition, injection molding sales alone will be at least $200 million, Geist said.
CLC has worked with CK for many years.
"In fact we have been doing outsource/overflow work for them," Geist said. "What was really attractive for us was the customer relationships and strategic infrastructure designed to support those customers. In addition, where else will you find such a concentration of large-tonnage injection molding capabilities in place?"
CLC has worked with CK's heavy-truck customers, as well.
"We have a very strong relationship with two of the customers already, and two of them we have been working with on a small level but now have significant business with them."
Geist is obviously optimistic about CLC's future: "We have strong growth with new product launches in our Indiana plant, but we also purchased the two sites from MVC [McKechnie Vehicle Components USA Inc.] last year that were very underutilized, as most customers left due to their financial situation. We are booking a lot of new business at those locations."
He was referring to the other significant purchase CLC has made in the past year: In July 2021, CLC acquired the two plants and other assets of distressed injection molder MVC.