Stern buys former American Custom Rotomolding assets

Brainerd, Minn.-based Stern Assembly Inc. acquired the assets of the former American Custom Rotomolding facility in Maple Plain, Minn., to nearly double its rotational molding capacity.

ACR Asset Management Corp. Inc. sold the machines, automation and auxiliary equipment from the business, which ceased operations in December 2020, to the wholly owned subsidiary of Stern Cos. Inc.

Stern CEO Shawn M. Hunstad said the acquirer also negotiated a new lease with the owner of the building that housed American Custom and was able to retain a majority of the estimated 25 people who were employed there before it closed.

Stern Assembly now has about 100 employees, including the Maple Plain site, which resumed operations Jan. 18 — three days after the acquisition closed — and became the company's third production plant, Hunstad said.

The other two sites are in Brainerd and Hoyt Lake, Minn.

Founded in 2006, Stern Assembly started out assembling snowmobile and ATV fuel tanks and added rotational molding in 2007, Hunstad said. The company now rotomolds fuel tanks, seat supports, shock-absorbing boots, tractor fenders and air ducts for the recreational vehicle, sporting equipment, medical and agricultural markets.

Stern Assembly is experiencing growth across the board, but particularly in the agriculture, recreation, lawn and garden, and restaurant supply markets, Hunstad said.

The company could also use about 30 more employees, he added.

"We are diligently searching for additional people for the Maple Plain facility as well as for all of our facilities in Hoyt Lakes and Brainerd," Hunstad said.

The capacity expansion will help Stern meet existing demand from customers ranging from Fortune 500 companies to local and regional manufacturers as well as bring in new business, according to Hunstad.

"We're experiencing organic growth with several current customers and additional large-part customers have been attracted to our purchase of the Ferry [Industries Inc.] 430 in this deal," he said of one of the assets acquired.

The machine produces parts up to 14 feet in length, such as docks and hunting blinds, the CEO said.

American Custom had been somewhat of a competitor, Hunstad added, but there were also times Stern turned to the acquired company to mold parts.

Founded in 1966, American Custom started out as Molded Products and has had many names and owners, most recently shareholders of its sister company, Acrylon Plastics Inc., in Winnipeg, Manitoba.

Acrylon had acquired American Custom Rotomolding in 2012 from Rotonics Manufacturing Inc. Before that it went by the names Barry Plastics, Minnetonka Molding, Pako, Pawnee LP and The Plastics Group.

In the asset deal, Hunstad said, Stern acquired five machines (Ferry 190, 220, 330, 370 and 430), three five-axis routers and forklifts, pallet racking, tables, office equipment and furniture. Stern's production fleet grew from six machines at two plants to 11 machines at three sites, he added.

In addition to Stern Assemblies, Stern Industries Inc. is a wholly owned subsidiary of Stern Cos. The businesses manufacture and broker plastic and rubber components to original equipment manufacturers.

The Stern businesses provide rotational molding, thermoforming and assembly services and brokerage services for all other rubber and plastic manufacturing, including injection molding, blow molding, die cutting, extrusions and more.

With an estimated $10 million in rotational molding sales, Stern ranks No. 48 among North American rotational molders, according to Plastics News data.

On the brokerage side, Stern supplies rubber-coated wedges that seal off the water in fire hydrants, Hunstad said.

Stern Cos. once was part of Stern Rubber Co. in Staples, Minn. In 2009 Hunstad took the predominantly plastics side of the business and a former partner kept the mostly rubber side, which is now owned by a Chinese firm.

For more information on the Stern Assembly job openings, email [email protected].