St. Charles, Ill.-based contract manufacturer Microplastics Inc. has purchased IVP Plastics LLC, diversifying its end markets beyond automotive, boosting sales to more than $45 million, and doubling the number of employees to more than 300.
IVP, also a contract manufacturer, injection molds custom parts mostly for the large construction, farming and foodservice sectors with about 150 employees. With estimated molding sales of $19 million, IVP ranks No. 261 among North American injection molders, according to Plastics News' latest ranking.
The growing company plans to make two more acquisitions in the next few years, MPI President Jim Chiavetta said.
Terms of the deal were not disclosed.
Like MPI, IVP employees will become employee stock ownership participants and shareholders once wait periods and vesting is completed.
MPI will operate IVP's two sites in Washington, Ill., and St. Louis as wholly owned subsidiaries. The three divisions will have sales of more than $45 million.
Founded 30 years ago, MPI is primarily an automotive Tier 2 insert molder with most sales related to radar and power steering, according to Chiavetta. To diversify, the company hired an investment banker to study the markets based on its acquisition interests.
IVP was attractive because of its range of end markets, which have no shared customers with MPI. The acquired company, which was founded 60 years ago, also has a tested reputation as a Tier 1 supplier. IVP sales increased about $3 million last year because of new food service business, Chiavetta said in an email.
IVP's website says it designs food-grade plastics that meet industry standards and develops metal-to-plastic conversion plans for products.
Together, the divisions will have expanded complementary strengths in engineering for large tooling and design services and a range of presses with 40-1,000 tons of molding capabilities. The three facilities combined will total 52 presses and 160,000 square feet of manufacturing. The breakdown includes 20 presses and 50,000 square feet of space in St. Charles, 18 presses and 75,000 square feet in Washington, and 14 presses and 35,000 square feet in St. Louis.
MPI President Jim Chiavetta said the lean company has a passion for continuous improvement.
"This acquisition will allow us to double in size and supports our long term growth by acquisition strategy," Chiavetta said in a news release. "We are committed to the vertical integration services this deal will facilitate to better serve our customers."
MPI welcomes the new employees into its "ownership" culture, Chiavetta added.