Clarion Technologies Announces Agreement to Acquire Double ``J'' Molding Inc.
28 April 1999
Clarion Technologies Announces Agreement to Acquire Double ``J'' Molding Inc.
HOLLAND, Mich.--April 28, 1999--Clarion Technologies Inc. (OTC:CTCH) Wednesday announced that it has reached an agreement to acquire the outstanding stock of Double "J" Molding Inc. in exchange for shares of Clarion Common Stock and the assumption of the outstanding debt of Double J.In a related transaction, Clarion will acquire the real estate owned by a partnership, and used by Double J, for cash and the assumption of debt.
Double J is a tier two automotive injection molding supplier. Double J's largest customer is Johnson Controls Inc. As expectations for tier two suppliers have changed recently, Double J has focused on developing into a full-service supplier.
Double J, located in South Haven, Mich., has grown from 20 employees and 18 injection molding machines in 1986, when it was purchased by current management, to 210 employees and 40 injection molding machines ranging in size from 55 to 500 tons.
Double J had 1998 sales of approximately $21 million. Double J currently operates from two facilities in Holland with a total area of 62,000 square feet, and is currently nearing completion of a 48,000 square foot addition to one of its plants.
William Maatman, president of Double J, stated, "We have built Double J based upon a commitment to excellence, meeting and exceeding customer expectations with a passion for quality. Our team members operate under the strong cornerstones of honesty, integrity, trust and high expectations for both themselves and the company. We have seen God's hand continue to work at Double J and are excited about joining up with Clarion both for the growth opportunities for our team members and for the adventure of what God has in store."
William Beckman, chief executive officer of Clarion Plastics Technologies commented, "The addition of Double J to the Clarion team is an exciting step in the execution of our growth strategy to create the premier full-service injection molding supplier. When combined with the product development and management capabilities of the Clarion Technology Center, and our existing manufacturing operations, we can now demonstrate complete cradle-to-grave service for our customers and have production capability ranging from 55 to 5,000 ton injection molding machines."
Clarion Technologies plans to complete the current construction and equipment additions planned for the South Haven facilities and will continue to operate the plants.
Beckman further commented, "One of the exciting parts in an acquisition for growth is the opportunity provided to the team members of the company. Double J has a very strong team with expertise in the automotive business. We look forward to adding their knowledge and capability as we continue to grow Clarion's automotive business."
Clarion Technologies is a Schaumburg, Ill.-based holding company which was established to pursue the strategic acquisition of businesses in the plastic injection molding industry with the goal of achieving growth through consolidation of synergistic businesses.
Clarion's strategic business objective is to be a full-service supplier to the heavy truck, tier two automotive, consumer goods and furniture industries. As a full-service supplier, Clarion will provide capabilities ranging from product ideation to the manufacturing of the final product.
Except for historical information, this news release contains certain forward-looking statements that involve unknown risks and uncertainties which may cause actual results to differ materially from any future results, performance or achievements expressed or implied by the statements made. Such risks and uncertainties include, but are not limited to, uncertainties regarding the marketing of its products, the availability of funds for ongoing operations and further development or acquisition activities and other risks detailed from time to time in the company's Securities and Exchange Commission filings.