Prism Acquires Tech Molded Plastics
In a union of two precision automotive molders, Chesterfield, Mich. headquartered Prism Plastics Inc. has acquired Tech Molded Plastics Inc. of Meadville, Pa.
Effective June 23, the deal nearly doubles Prism’s size and creates an operation with combined annual sales of roughly $60 million. Prism specializes in critical use, precision components, a niche the company has no intention of leaving, sales and marketing director Jeff Ignatowski said. The company supplies primarily the automotive end market, along with industry and medical. In looking for an acquisition, Prism sought a company with a similar product type, but with different markets or different capabilities, said CEO Rod Bricker.
In northwestern Pennsylvania, Tech makes small precision parts for automotive, aerospace and electronics. “It gives us a little bit of diversification, and also there’s really no customer overlap so we get good customer diversification between the two companies, so that’s another positive,” Bricker said. “But they’re the same type of customers.”
Tech has 36 presses from 33 to 440 tons of clamping force at its Meadville facility. Through the deal Prism also gains Tech’s toolmaking capabilities.
“Our current [tooling] supply base, we’re planning on still using them as well. But they [Tech] have a good tooling arm and they’re used to doing very tough parts, high-precision type parts like we make,” Bricker said.
For Tech, the match is an expansion of its geographical footprint and a sharing of expertise. Prism operates three facilities: in Chesterfield, Mich.; Port Huron, Mich.; and Harlingen, Texas. Its 35 presses range from 65 to 390 tons.
“We’ve always kept a close eye on the future, and a close eye on strategic planning and positioning,” Tech President and CEO Scott Hanaway said in a telephone interview. “The last couple years we knew that our growth was going to put us in a position that we were going to have to partner to handle additional growth, and some of our customers were looking for other locations… We said, ‘Hey, let’s give it a look. Let’s see if we can find a right partnership, a right strategic partner that will help take this organization to the next level, and do it for our people, do it for our community, do it for the interest of the whole.’”
Executives from both companies were struck by their common corporate cultures. “It seemed too good to be true at first, and the more we dated, the more we found the value in the relationship,” Hanaway said.
Tech Molded Plastics was Plastics News Processor of the Year in 2013. Prism was a runner-up for the 2014 award, and won the PN Excellence Award that year for customer relations.
The Tech team is interested in following Prism’s example in highly integrating IQMS ERP into its operations.
For now, Tech will retain its name and brothers Scott and Mark Hanaway, vice president, will stay on for the transition.
“The bottom line is we’re both committed and we’ll be on as long as it takes to make this a very smooth, seamless transition and unite the cultures and the folks and our customer base and continue to see it on a stronger path,” Scott Hanaway said. “Help get some of our key folks to help them maybe be in more of a leadership position, and then when we get to that level, maybe we’ll spend a little less time in that role.”
The companies were introduced by Molding Business Services, which represented Tech in the deal. Terms of the deal were not disclosed.
Written by Kerri Jansen