Owner Revolution Inc., owned by an employee stock option plan, is selling its rotational molding and plastics manufacturing activities in two separate transactions.
ESOP members must approve at least one of the deals.
In the first proposed sale, announced September 25th, Pollard Banknote Ltd., a Canadian provider of lotteries around the world, announced the purchase of Schafer Systems Inc. of Adair, Iowa, the point of purchase -Displays for lotteries and other manufactures markets.
In the second, announced a day later, rotary moulder Elkhart Plastics Inc., based in South Bend, Indiana, purchased the assets of two of Owner Revolution’s Atlantic, Iowa subsidiaries: Plastics Professionals Inc., a custom injection molding company, and Connect-A-Dock Inc. a manufacturer of floating modular docks.
Elkhart Plastics will continue both rotational molding businesses from the Atlantic factory with 10 rotational molding machines and will be Eklhart’s sixth factory. The other plants are in Indiana, Colorado, and Washington state.
Plastic Professionals will become Elkhart Plastics of Iowa and the Connect-A-Dock brand will continue to operate under the same name, according to published reports.
Elkhart CEO and President Jack Welter said in a press release that his company plans to move some of its products to the Iowa factory to better serve existing customers.
“We are pleased that with this acquisition we can expand our presence in the USA and give EPI greater capacity. We look forward to improving the service for current and future customers with an additional production site, ”said Welter. He could not be reached for further comments.
Don Hudak, CEO and President of Owner Revolution, didn’t return calls for this story. He told Atlantic News Telegram, Iowa, that Elkhart Plastics “has aggressive plans to grow the business and bring new jobs and opportunities to the area.” Quoted in the local newspaper, Hudak said the sale was “in the best interests of employees and the local communities.”
According to the latest Rotomolders ranking by Plastics News, Elkhart Plastics has a turnover of 96.1 million US dollars, making it the seventh largest Rotomolder in North America. Elkhart operates 46 rotational molding machines. Plastics Professionals has estimated sales of $ 20 million in the ranking.
Owner Revolution was founded in 1986 by Chris Schäfer. At that time the company was known as Schafer Systems and mainly manufactured lottery ticket machines. The company later grew into new markets, including floating docks.
Schafer sold the company to ESOP in 1999 and decided to retire. The company was renamed Owner Revolution in early 2011 when it achieved its goal of 100 percent employee ownership.
Owner Revolution received an Iowa Job Honor two years ago for efforts to recruit people with obstacles to employment, such as those with developmental disabilities, previous convictions, and addictions.
In the other current sale, Owner Revolution is selling Schafer Systems to Pollard Banknote of Winnipeg, Manitoba for $ 23.5 million. The acquisition is subject to a vote by ESOP members, Pollard said, adding that the company employs about 50 people.
“Schafer has a long history of profitability,” said Pollard. Pollard banknote is publicly traded on the Toronto Stock Exchange. The Pollard family owns 67.6 percent of the company.
According to local newspaper reports, Owner Revolution still owns Blue Wave Ultrasonics, a manufacturer of industrial ultrasonic cleaning systems in Davenport, Iowa. Owner Revolution bought Blue Wave a year ago.