Acquisition completes plastics unification

Edited by the Engineeringtalk editorial team Feb 5, 2004

Moldflow has completed the acquisition of the privately held American MSI Corporation (AMSI), a leading solution provider of hot runner control systems for the injection moulding industry.

Moldflow has completed the acquisition of the privately held American MSI Corporation (AMSI), a leading solution provider of hot runner control systems for the injection moulding industry.

AMSI's principal operations will continue to be based in Moorpark, California.

American MSI recently introduced Altanium, an innovative, small-footprint hot runner temperature control system that can nevertheless support up to 384 mould control zones.

The acquisition of AMSI brings together two of the most well established and leading brand names serving the plastics industry.

This combination significantly expands the breadth of Moldflow's product offerings for the injection moulding shop floor.

Together, Moldflow and AMSI will offer a wide range of automation and optimisation solutions for the plastic injection moulding industry.

Hot runners are a key element of sophisticated mould systems used in the manufacture of large components or moulds with high cavitation, such as are typically used in industries such as automotive, packaging and medical instruments.

AMSI hot runner controls are used by many leading suppliers, including Gillette, 3M, Bose, Chrysler, Delphi, Colgate-Palmolive, TRW, Eastman Kodak, Volkswagen and Nissan.

AMSI has an active base of more than 3000 customers and over 8000 installations.

For calendar year 2003, AMSI had revenue of approximately $9 million (?5 million).

The agreement calls for Moldflow to pay $7.3 million (?4 million) in cash and issue 349,288 shares of Moldflow's common stock in exchange for 100% of the outstanding common stock of AMSI.

Based on the closing price of Moldflow's common stock on 23rd January 2004, the transaction is valued at approximately $12 million (GBP 6.7 million).

As a result of completing the acquisition AMSI, Moldflow is to reorganise its operations into two business units, representing its Design and Manufacturing Solutions product lines.

American MSI chairman and CEO Tim Triplett will remain with the combined company in a new role as Executive Vice President and General Manager of Manufacturing Solutions.

In this role, he will oversee all sales, service and support operations for the existing Moldflow Manufacturing Solutions and newly acquired AMSI hot runner control product lines.

Ken Welch has been promoted to Executive Vice President and General Manager of the Design Analysis Solutions business unit.

In this role, he will oversee all sales, service and support operations for the Moldflow Plastics Advisers (MPA) and Moldflow Plastics Insight (MPI) product lines.

In other management changes announced concurrently, Peter Kennedy, Moldflow's Vice President of Technology Development has been named Chief Technology Officer for the corporation.