Auxiliary acquisitions take centre stage

The plastics auxiliaries sector was in the spotlight in June after a string of major strategic acquisitions.

Markham, Ont.-based Wittmann Canada Inc. — formerly known as Nucon Wittmann — announced that it had purchased the M-Tek blending and materials handling line from Scarborough, Ont.-based Mould-tek Industries Inc. The terms of the acquisition were not disclosed.

According to Mould-tek CEO Lorne Berggren, the deal between the two companies had been months in the making, and will allow the M-Tek gravimetric blending system to reach a greater number of potential customers.

“We’ve been making blenders for a long time, but were never able to get the message out,” he said. “As part of the Wittmann Canada line, the M-Tek blender now has a chance to make a real show in the industry.”

Farmingham, Mass.-based Moldflow Corporation seemed to be living by the same maxim when the company sold its Manufacturing Solutions Division for $7 million to Canada’s own Husky Injection Molding Systems Ltd.

“I believe that Husky is a strategic owner with the global infrastructure, expertise and focus needed to take our Altanium and shop floor products to the next level,” said Moldflow president and CEO Roland Thomas.

Husky now offers Altanium temperature controllers, Celltrack and Shotscope software products, and Moldflow’s automated process set-up and optimization tool to its customers. Husky also said that it would continue to offer the current line of LEC and TTC hot runner controllers during a transitional period.

Over at Wittmann, M-Tek equipment will continue to be produced from the Mould-tek Industries headquarters, until Wittmann Canada merges the manufacturing into a new Toronto area facility and brands the line with its own name.

A majority of Mould-tek Industries’ employees will eventually be transferred to Wittmann Canada as well, but a skeleton staff will remain behind.

“We will still retain our injection molding machine business,” said Berggren.

The company was appointed as the exclusive Canadian representative for Hong Kong-based Chen Hsong Group’s injection molding machines. Mould-tek has also represented Japan’s Kawaguchi line of injection molding machinery for over 30 years, with over 1,000 Kawaguchi machines sold in Canada during that time.

Both Husky and Wittmann noted that the acquisitions would allow them to build their portfolios and capture a larger market share.

“We have been a significant player in the systems market for many years but never had our own blenders to offer our customers,” said Wittmann Canada president Rob Miller. “We now have a key piece that we were missing as a manufacturer and the ability to fully integrate the complete system using single controls platform.”