Plasticon's Acquisition of Pro Mold Inc. to Increase Production Capacity to an Estimated $20 Million
LEXINGTON, Ky., Aug 10, 2005 (PRIMEZONE via COMTEX) -- Plasticon International Inc. (Pink Sheets:PLNI) announced today that the company has completed primary due diligence on the acquisition of Pro Mold, Inc., one of the premier injection molding facilities in the Midwest.
The privately financed acquisition (with no dilution for PLNI shareholders) will dramatically increase Plasticon's production capacity to $20 million in manufacturing and sales annually for this facility alone. Said Jim Turek, President and CEO of Plasticon International, Inc., "As we continue to increase our sales and as demand continues to rise, this acquisition will be critically important in terms of fulfilling our obligations to the growing needs of our clients. We look forward to welcoming Pro Mold, Inc. to our team and working with the seasoned senior management at Pro Mold, who will be retained as part of this deal.
"Our legal counsel has just completed the initial due diligence on Pro Mold and has given us the green light with the acquisition, pending completion of Pro Mold's audit which should be finished in less than 30 days," continued Mr. Turek. "We are happy that this process has moved forward expeditiously, and we have set a tentative closing date for the first week in September."
According to Mr. Turek, the acquisition was necessary to meet the growing demand for recycled plastic products in the construction industry. "This acquisition is essential to the growth of Plasticon International," he said. "We are experiencing the strongest growth in the history of the company. We attribute this to several factors including the rising price of steel, which has created a major shift in the construction industry away from steel and towards recycled plastic, and the fact that our products are stronger, more durable, more versatile and more cost-effective than metal rebar support products."
Pro Mold, Inc., a state-of-art custom plastic injection molder of thermoplastic materials in St. Louis, Missouri, has been in business since 1987. "We are thrilled about this acquisition because not only does it allow us to considerably increase our production capacity, it also allows us to ensure that we continue to deliver the highest quality products to our customers," Mr. Turek said.
For more information, please visit Plasticon International online at www.plasticonintl.com or contact 1 866 THE APPL(E).
