Engineered Plastic Components Inc. CEO Reza Kargarzadeh says his company will add more presses at the injection molding plant it just purchased in Scottsburg, Ind., from Viking Plastics.
EPC, based in West Des Moines, Iowa, said that the Scottsburg plant makes injection molded interior trim.
Officials added that both firms' management "have worked closely to make sure this transaction was successfully and seamless to their customers."
Kargarzadeh said the acquisition "will increase our footprint and ability to service all of our customers better."
In a June 30 phone interview, Kargarzadeh said that EPC first met with Viking owners Spell Capital earlier this year.
"They were marketing that one specific plant," he added. "We visited and based on our strategy and [the plant's] location and customer base, we found it attractive."
Corry, Pa.-based Viking added six new injection molding machines in Scottsburg last year. Kargarzadeh said that EPC plans to add more in the near future.
Viking President Kelly Goodsel said in a June 29 phone interview that the sale of the Scottsburg plant to EPC "wasn't a forced situation."
"The sale worked for both companies," he added. "It allows us to focus on what we do well."
Like many automotive molders, EPC has faced challenges in the last year because of the pandemic and supply chain issues, including a shortage of semiconductors. Kargarzadeh said that being diversified into other markets such as appliance, consumer and medical has helped EPC weather the storm.
"We do a variety of different custom molding," he added. "Now there's a lot of pent-up demand in automotive, so hopefully we've overcome the COVID issue and people are ready to come back to work."
EPC now has 18 locations in North America. The firm has been involved in multiple acquisitions, most recently buying an injection molding plant in Bessemer, Ala., from Inoac Corp. of Japan in October.
Kargarzadeh said EPC "is looking to make acquisitions in certain markets" and the the firm "is looking to increase in medical."
"We'll do deals that make sense for us," he added.
Viking purchased the 120,000-square-foot Scottsburg plant, which employs 220, in 2018 as part of its acquisition of Genesis Plastics and Engineering LLC. Goodsel said Viking "is still in the market" for additional acquisitions.
Prior to the Scottsburg acquisition, EPC ranked as North America's 33rd largest injection molder, according to the most recent Plastics News data, with annual sales estimated at $280 million. Viking Plastics ranked No. 109, with estimated sales of $70 million.