Large-tonnage injection molding specialist Commercial Plastics Company (CPC), Mundelein, Ill., has acquired the assets of fellow molder Xten Industries, Kenosha, Wisc., via an auction process, ending a tumultuous fall for the 74-year-old company, which saw it flirt with default.
In mid-September, Xten’s financial issues came to the fore when it abruptly closed its Lockport, Ill, operation, shutting down the former Paramount Plastics LLC, which it had acquired a little more than 2 years earlier, in May 2012.
Approximately one month later, Xten filed a notice with the Wisconsin Development of Workforce Development office stating that it would cease operations at its Kenosha plant and lay off 120 employees.
That closure was avoided by the purchase of the company’s assets by CPC, which announced the deal on its website on Nov. 13. In that posted release, CPC President Matthew O’Connor said his company “sees growth opportunity with the quality partnerships Xten has built over the years and look forward to further developing those relationships.”
Founded in 1940 as Hauser Plas Tech in Chicago, the company was renamed Xten Industries in 2000 following its purchase by partners Matthew Davidson and William Renick. In 2001, Xten acquired Priority Tool and Manufacturing Company in Kenosha, and in 2002, Xten moved both acquisitions into one facility in Kenosha. That ISO 2008:9001 certified facility covers 78,000-sq-ft and runs 31 injection molding machines ranging in size from 60-1,140 tons.
CPC said in the release that Xten would continue business as usual, but the company will now be known as Commercial Plastics Kenosha LLC. All current Xten Industries employees will be retained.
CPC operates a 105,000-sq-ft ISO 9001:2008 certified facility in Mundelein, with 33 injection molding machines, ranging in clamp force from 65 to 2,000 tons.
Xten’s sudden financial hardship, which has not been explained by the company, is all the more surprising given its recent success and recognition. An article in the Biz Times Milwaukee one year and a day from its auction purchase by CPC discussed how the company was on pace for $50 million in revenue in 2013, up from $20 million in 2011, while laying our recent accolades, including being named to the Inc. 5000 list; receiving the Employee Engagement & Commitment Award from Wisconsin Manufacturers & Commerce, and being awarded as the Kenosha Area Business Alliance’s 2011 Kenosha County Business of the Year.