Milacron makes another move on the acquisition front
Published: February 7th, 2014
Milacron recently completed the acquisition of Industrial Machine Sales, Inc. (IMSI) and its sister company, Precise Plastics Machinery (PPM). IMSI specializes in the application engineering of primary plastics processing and support systems for many operations, including injection molding, extrusion and blowmolding. PPM was established in 1994 as a full service support company for the plastics industry, including offering pre-owned equipment and turnkey services. [In December, Milacron announced the acquisition of American Extrusion Services.]
Larry Burchett, the president and owner of IMSI and PPM, actually started his career at Milacron. His purchase of IMSI in 1991 ended his direct employment at Milacron, but kept him connected through a 20-year agent association developed among IMSI, PPM and Milacron.
Shawn Reilley, group VP of sales & marketing for Milacron, told PlasticsToday the long standing relationship between Milacron and IMSI and PPM made this acquisition a natural fit. PPM has machinery refurbishing capabilities along with system design and installation skill sets. These capabilities align well with Milacron's desire to support our customers at multiple levels throughout the entire machine lifecycle, he said.
"In our business, relationships play a key role and did factor into this deal," he said. "Larry has played a critical role on our team for many years, even when he was not a direct employee. He has shown the ability to deliver results year over year and has done so with integrity and ingenuity. People of Larry's caliber always factor into these types of decisions. We are simply making it a more formal relationship."
Ultimately, this acquisition fits the company's strategy of lifecycle management, which is Milacron's involvement from the new machine to when it is time to rebuild or replace, Reilley said. "This will extend our reach of aftermarket services, such as our PART-nership program and service technologies," he said.
Based in Southlake, TX, both IMSI and PPM provide technology for manufacturers in the plastics industry located in Texas, Louisiana, Oklahoma, Arkansas, Mississippi, New Mexico and the northern border of Mexico. IMSI and PPM's staff will join the Milacron team and will continue to be based in Southlake at the current location. The location will serve as a High Impact Technical (H.I.T.) center in the region providing plastics machinery support, including training and aftermarket parts and service.
Reilley said that the company expects that its customer base will grow with this acquisition, not only by the addition of IMSI's accounts, but also based on the enhanced presence of Milacron in the region.
"Milacron is very excited to establish relationships with customers who may not be aware of the world class technologies that we provide," he said. "Customers that are not able to purchase new Milacron equipment can now purchase Milacron certified pre-owned equipment with confidence."