HOLLAND — Acquiring the assets of a Charlotte-based plastics molder gave Clarion Technologies Inc. a broader customer base, added manufacturing capacity and the ability to move production closer to clients.
The Holland-based Clarion Technologies acquired certain assets and a book of business from CNI Plastics LLC of Charlotte. Clarion Technologies redeployed the production equipment acquired in the deal to its facilities in Greenville, Mich., Anderson, S.C., and Garland, Texas.
The deal enables Clarion Technologies to better utilize its production footprint with the acquired equipment, and “will reinforce our multi-regional growth strategy and allow future expansion in the multiple markets we serve,” President and CEO John Brownlow said.
In “almost all cases,” Clarion Technologies’ production is now within a four-hour window of customers, Brownlow said.
“We’ve redistributed the work to get that work closer to the end customer,” he told MiBiz. “We’re redeploying to the advantage of our customer. At the end of the day, we’ll be closer to them logistically.”
Terms of the transaction, which closed in mid-December, were undisclosed. BlueWater Partners LLC in Grand Rapids served as the financial adviser for Clarion Technologies.
The acquisition consists primarily of automotive customers, Brownlow said. Clarion Technologies also serves the appliance, consumer products, medical and HVAC industries. The company employs about 450 people and, with the acquisition, has about $80 million in revenues.
The deal is the second in 18 months for Clarion Technologies, which in October 2017 acquired the assets, business and operations of Garland, Texas-based GTM Plastics Inc.
Clarion Technologies formed in 1999 and began acquiring plastic injection companies. When the economy dipped in 2000 and business got soft, the highly leveraged company struggled financially but managed to get through. Clarion four years ago also transitioned from a publicly-traded company to a private firm held by local investors.
The company will look to make additional acquisitions in the future to drive growth, Brownlow said.
“We want to continue to grow,” he said. “If the opportunity is out there, we certainly could kick the tires. I don’t know that we’re looking to do anything in the next several months, but I think for sure in the next 24.”