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December 14, 2021 03:25 PM

Molded Dimensions widens reach with PCO purchase

Mike Scott
Rubber News Correspondent
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    Molded Dimensions says its acquisition of PCO Urethanes will help grow its business and offerings to customers.

    The executive team at rubber, polyurethane and plastics manufacturer Molded Dimensions believes the most effective way to grow its molding business is through acquisitions.

    And it's starting with the purchase of Marshfield, Wis.-based PCO Urethane, a maker of custom urethane parts including wheels, pipes, agricultural products and crane stops. The company serves customers in the agricultural, mining and manufacturing spheres.

    Details of the acquisition — finalized in early December — and financial terms were not released. But the deal was made to help support Port Washington, Wis.-based Molded Dimensions' efforts to expand geographically, to eventually increase its reach in the Midwest, Northeast and Western U.S.

    Just as importantly, the company pursued the deal because it recognized PCO Urethane's expertise would allow Molded Dimensions to expand its molded rubber, plastics and urethane offerings. This includes high-speed machine pouring and higher volume urethane and related complex components, said Bobby Desai, Molded Dimensions vice president of sales and marketing.

    Plus, it will help Molded Dimensions broaden its portfolio of products it can market to existing customers.

    "We wanted to expand our offerings so we can cross-sell to our existing clients as well and be able to offer them even more solutions," Desai said. "This will allow us to better meet the needs of large OEMs in particular. We are excited about becoming even better known as a leader in rubber, urethane and plastic."

    Molded Dimensions manufactures custom-molded rubber and polyurethane components across numerous industries since first being established in 1964. It was acquired by venture capital firm Shoreview Private Equity in Minneapolis in 2018, giving Molded Dimensions the financial backing it needed to grow through acquisitions. Its new management team has taken an aggressive growth approach in pursuing sales, and it believes now is the time to speed up that growth effort.

    Two of the larger industries it serves are lawn and garden and power sports, although the company's tagline is serving clients in industries from "medical to mining." Other notable sectors served including marine, aerospace, small engine makers and others.

    No changes to staff or operations are expected at PCO Urethane's more than 50,000-sq.-ft. facility. In fact, the presence of Molded Dimensions' sales team likely will help to keep the Marshfield plant and its roughly 40 employees busy, possibly requiring the need to hire more professionals, Desai said. The potential employment opportunities extend to Molded Dimensions' headquarters and are expected to positively impact communities in central and southeastern Wisconsin and throughout the state.

    PCO Urethane specialized in formulating new compounds, and designing new molds and equipment for custom applications.

    PCO Urethane, acquired by Molded Dimensions earlier this month, has expertise in designing new molds and equipment for custom applications.

    "We expect it to be status quo and all staff (at PCO) to stay," Desai said. "Traditionally, PCO had done much more open cast, hand-poured and high-volume work, so it will complement us as well. (The acquisition) is expected to double our urethane business so that it will be about as large (revenue-wise) as our rubber work."

    The PCO brand is expected to remain for now.

    PCO also has expertise in making metal parts such as rollers, gears and sprockets, Desai said. These types of longer-lasting parts require more abrasion resistance than what the new parent company is used to producing. Its Armadillo Pipe brand of products is highly regarded for clients in the agricultural, industrial, mining and other industries.

    Molded Dimensions employed more than 115 before the acquisition, and projects a record-revenue year in 2021 after achieving consistent double-digit revenue growth in the years immediately before the pandemic-impacted 2020, Desai said. Its client base ranges from producing industrial rubber components for large OEMs to making specific custom parts for small manufacturers.

    "This acquisition is a tremendously exciting opportunity for our employees and our company expansion," Brian Sprinkman, president and CEO of Molded Dimensions, said in a statement. "When you add what Molded Dimensions offers in rubber production to an expanded urethane capacity, we are well-positioned to appeal to a wide range of customers in industries that use molded parts and components."

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