Otto Environmental Systems North America Inc. is expanding its injection molding capabilities into the Midwest by acquiring a South Bend, Ind., factory from Springboard Manufacturing.
The South Bend plant currently has 30 molding machines with up to 500 tons of clamping force. Otto plans to install larger-tonnage equipment by November.
Otto will invest $5 million to expand the company's capabilities and bring its large-tonnage molding to the Midwest.
The deal is the fourth for Otto in the past 18 months.
"It just so happened that opportunities within our wheelhouse all came available, basically all at the same time," said Shawn Whiteman, executive vice president at Charlotte, N.C.-based Otto.
"We really wanted to take advantage of it because we knew it fit in with our overall growth strategy. We had to bite the bullet and it was a busy 18 months," Whiteman said.
Springboard, on the other hand, has been building its capabilities as a medical molder, also via acquisition.
But the South Bend plant didn't do medical molding, so Springboard hired Florence, Mass.-based Molding Business Services Inc., dba MBS Advisors, to find a buyer.
After selling the South Bend plant, Springboard relocated its headquarters to its medical-focused factory in Rancho Cordova, Calif.