North America's largest rotational molder, Lincoln, Neb.-based Tank Holding Corp., made its 14th acquisition in two years with the purchase of Rotational Molding of Utah Inc.
The deal gives Tank compression molding technology and additional rotomolding capacity in the Southwest.
Brigham City, Utah-based RMU has been rotomolding tanks, pallets and trash containers since 1992. In 2001, it added compression molding, and it makes sheet and products like pallets from lower-cost recycled plastics.
"RMU brings valued long-term customer relationships and continues an important part of Tank Holding's overall growth strategy, which is to strengthen leading positions in core and adjacent markets, including expansion of our custom molding division," Tank Holding CEO Greg Wade said in a news release.
Terms of the deal were not disclosed, but the release said the transaction includes RMU's facility in Brigham City.
RMU has $12 million in annual sales, 74 employees and nine machines, and it ranked 42nd among North American rotational molding companies, according to Plastics News' latest data.
Tank Holding is the No. 1 rotational molder with $350 million in yearly sales, according to the same ranking.
Owned by the private equity firm Olympus Partners, Tank Holding has been on an acquisition streak, most recently buying Florida-based rotational molder Dura-Cast Products Inc. in February. Dura-Cast makes bulk storage tanks, laundry and linens carts, material handling bins and containers, and other refuse, recycling, marine and custom products.
Other recent acquisitions include Waste & Recycling Plastic Containers Inc., Chem-Tainer Industries Inc., Meese Inc. and Rotational Molding Inc.
The RMU deal gives Tank Holding synergy opportunities with some of the other acquired businesses, complementary core tank and material handling product lines, and the broadest product portfolio and the largest footprint of manufacturing facilities, according to the news release.
Prior to the RMU acquisition, Tank Holding operated 36 manufacturing plants and employed more than 1,000 people in North America.
RMU Chairman Joe Brough said the two companies are a good match.
"Tank Holding is the ideal partner to accelerate our growth objectives and expand our market reach," he said. "Both companies' values are well aligned, and I am confident we will continue the success for both our customers and employees for years to come."