By Marilyn Odendahl, Truth Staff
modendahl@etruth.com
EDWARDSBURG, Mich. -- More than removing competitors from the market, Duo-Form Plastics has completed the acquisitions of two Elkhart, Ind., companies which will help ease its over-dependence on the recreational vehicle industry.
Duo has purchased the assets of the Majestic Plastics, near the Elkhart Municipal Airport. It will keep the operation in Elkhart and retain the 20 employees, said George Thomas, owner and chief executive officer of Duo.
In January, Duo purchased the assets of the defunct GS Plastics Inc. That company, which closed in December, had operated out of facilities on Reedy Drive and Borg Road. The equipment and production lines have been moved to Duo's plant in Michigan. Thomas estimated about 25 of the 100 employees who had worked at GS were given jobs by Duo.
The acquisitions come at a time when the economy is continuing to fall. However, Thomas said, he believes the market will soon hit bottom and he wants to position his company for the anticipated economic upswing.
"I thought this is a good time to get everything locked and loaded," Thomas said of his decision to buy.
He declined to reveal the terms of the acquisitions.
Majestic and GS manufactured products similar to the baths and skylights Duo makes for the RV industry. However, in addition to serving the RV segment, Majestic and GS counted about 20 percent and 30 percent, respectively, of their business with customers outside the industry, Thomas said.
Getting those non-RV clients will enable Duo-Form to diversify its market. Prior to the purchases, about 95 percent of Duo-Form's business was with the RV industry, Thomas said.
Thomas started Duo-Form when he bought the bankrupt Kevco, also a supplier to the RV industry. As part of the purchase, he got the building in Edwardsburg which was brand new.
Noting the lower taxes in Indiana, Thomas said he would like to move the operation across state lines but, among other considerations, the building is carries a 10-year, $5 million bond with the state of Michigan.