Husky's hunt to acquire a closure molder is complete. Husky Injection Molding Systems, the manufacturer of injection molding machines, hot runners and molds for PET preforms, reports it will acquire plastic closure mold manufacturer KTW. Husky likely will divest KTW's custom molding business to avoid any conflict of interest with its customers.
Both companies are privately owned and did not share details on the price of the acquisition. The sale is expected to close in May 2011. "Husky and KTW have worked very closely to develop closure manufacturing solutions that enhance productivity, eliminate waste and improve part quality for our customers," said John Galt, Husky's president and CEO, in a statement. The acquisition obviously will cement the close relationship.
Once the acquisition is complete, Husky (Bolton, ON, Canada) will offer KTW-branded closure molds as part of its turnkey systems for closure molding: machine, hot runner and now also molds. Husky reckons the purchase will make it the closure industry's only provider of complete injection molding systems, including mold, machine, hot runner, temperature controller, and consulting and after-sales services.
Two years ago the European molding industry was abuzz with talk that Husky was about to acquire one of its longtime customers, Swiss moldmaker and injection molder Corvaglia. The purchase never came to pass. Officials at both companies, questoned then by MPW, refused comment, and Corvaglia even issued a press release indicating it intended to remain an independent company.
KTW's leadership team of Anja and Claus Ziegler will continue to be involved in leading the business after the completion of the transaction. KTW's operations in Austria, the Czech Republic and Germany will become Husky's closure mold development and manufacturing centers of excellence. KTW's headquarters is in Waidhofen an der Thaya, Austria, close to the Czech border.
"Becoming part of Husky will allow us to incorporate KTW technologies into the industry's most advanced closure molding systems, while also gaining the advantage of Husky's extensive sales and service network to better support our increasingly global customer base," commented the Zieglers.
In a related development, Husky plans to initiate a strategic review process for KTW's custom injection molding division, Injectoplast. The molding operation grew out of the moldmaker's mold testing machinery, as is often the case, and has grown into a leading injection molder of closures for the carton packaging industry-think Tetra Pak-and for PET bottles. The company has more than40 injection molding machines. Daily, the machines form 12 to 14 million closures for PET and glass bottles, as well as carton packages, in addition to a range of baby products, totaling to about 4.5 billion molded parts per year.
Husky says the review is necessary to avoid any potential conflict of interest with Husky's customers. This process will begin following the close of the KTW acquisition.