Xten Industries acquires assets of Paramount Plastics

in Lockport, IL. Founded in 1990, Paramount Plastics is an $18 million full-service injection molding company with 24 presses ranging from 60-2000 tons. While Paramount was founded as an automotive supplier for large-tonnage parts, the company also serves the industrial, consumer durable, health and fitness, and packaging markets as well, from its 122,000-ft² facility.

Matthew Davidson, CEO and co-founder of Xten Industries, told PlasticsToday that his company had plans to expand its existing facility to accommodate two new 1500-ton presses. “That would have required new space, new cranes, and pouring thicker concrete floors,” Davidson told PlasticsToday. “While planning was underway, we were contacted by Paramount’s broker about a possible sale. Their available capacity matched up almost perfectly with our anticipated needs over the next three years. The rest is history.”

With the addition of Paramount’s capacity, Xten now has a total of 50 presses and 170 employees, which includes the 75 team members at Paramount. “In addition to the larger equipment, we’ve gained the operational expertise of Paramount’s people,” said Bill Renick, Xten’s president and operations leader. “Out of the due-diligence process, we came to realize how much they have contributed to Paramount’s success and feel fortunate to have them within the Xten family.”

While the acquisition of the assets of Paramount Plastics provides Xten with an entrée into the automotive market, automotive currently represents less than 10% of Paramount’s business base, according to Davidson. “Paramount’s primary business can be broken down into 27% consumer durable products, 71% hazardous waste/industrial products, and about 2% miscellaneous products,” he added.

“One of the qualities both Xten and Paramount share is our dedication to providing exceptional service,” Davidson noted. “Given this common focus, we’re certain Paramount’s current customers will notice no decline in our ongoing support.” Xten will maintain the name Paramount Plastics at the Lockport facility.

Xten Industries was founded in 1940 and moved to Kenosha in 2001, and today is a $45 million injection molding company and full-service product fabricator. The company offers many auxiliary services including part and tool design assistance, engineering, finishing, in-mold decorating, assembly, and packaging, along with inventory management and logistical support. The company has received the Future 50 Company of the Year for three consecutive years from the Council of Small-Business Executives of Metropolitan Milwaukee Association of Commerce. (You can read more about Xten in this four-part series on the company published in 2010).