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November 25, 2008

A premier acquisition

Catching up on the news a bit. The plastics company run by my brother, Dean Lail, has acquired another company. Here's the press release:

 10/31/08 Sapona Plastics buys Premier Molded assets

Sapona Plastics is announcing that it has acquired substantially all of the assets of Berguda Holdings, LLC d/b/a Premier Molded Plastics of Leland, NC. The purchase includes all of the thermoplastic molding equipment, as well as accounts payable and accounts receivable. The asset purchase does not include the thermoset operation.

With the acquisition, Sapona Plastics will grow from $6 million to over $10 million in annual sales while adding approximately 25 jobs. Both companies have experienced the effects of a weak economy and foreign competition, and now combined, expect to be in a more effective operating condition. In addition, Sapona will broaden its press size range from 55 to 720 Tons and enhance its quality inspection lab capabilities. Customers will also benefit from a more modern, highly efficient 7/24 operation and will continue to experience the same excellent customer service and quality they expect. "We are pleased that the new customers have already given our systems very high marks during on site audits approving the transition. The credit goes to the employees for a lot of hard work, both up to now and ahead of us all." said Dean Lail, company president.

Steve Rammrath, president of Premier, will join Sapona as VP of Sales and Tech Service. Premier will continue to operate for a brief transition period while operations are consolidated into the Asheboro facility. Sapona will be selling off most of the Premier equipment as surplus over the next several months. The outlook for the remaining Thermoset business is unknown at this time. The combination of the two companies was facilitated by consultant Terry Minnick with Molding Business Services of Florence, MA.

Premier Molded Plastics served the electrical, energy, home appliance, recreational and telecommunication markets. Capabilities included 18 presses with insert molding, assembly, pad printing, machining, ultrasonic welding and a full range of related technical services. The ISO9000 certified facility employed 45 in a 26,000 sq.ft. facility. In addition, the company operated 3 thermoset molding machines and associated secondary's. Lail commented that "Premier operated a very customer driven and lean operation that impressed Sapona as a very good fit."

Sapona Plastics, is an ISO9000 certified manufacturer of custom and proprietary injection molded and assembled products serving various existing markets including personal care, consumer, promotional and automotive. Sapona also has ISO13485 medical device manufacturing certification. Products include drink mugs, lip balm containers, cleaning brushes and buckets. Sapona has 14 existing molding machines ranging in size from 100 Tons to 500 Tons, 4 brush bristling machines and two glue assembly lines. Sapona operates currently with 55 employees on a 7/24 schedule. Sapona Plastics is a joint venture with Sapona Manufacturing, a North Carolina textile company.
See the company Web site.