Kenosha-based plastic injection molding company Xten Industries LLC has been sold out of bankruptcy to Mundelein, Ill.-based Commercial Plastics Co.
Xten, valued at $25 million, filed a WARN notice with the state in October indicating it would close and lay off 120 employees if the sale did not go through.
Following the transaction, Xten will change its name to Commercial Plastics Kenosha LLC and continue business as usual in Kenosha. All 120 employees and the management team will be retained at the location.
The sale was due to a variety of reasons, said Bill O’Connor, vice president of sales at CPC.
“It was just a business decision by the old owners,” he said. “I think they maybe took on too much too fast.”
Xten was established in the 1940s in Chicago under the name Hauser Plas Tech. It changed its name to Xten in 2000. The company has a 78,000-square-foot Kenosha plant with 31 presses. It previously had a Lockport, Ill. location, which was separated and liquidated a few months ago, O’Connor said.
CPC plans to hire several new employees at Xten. The combined company will generate $60 to $65 million in sales, he said.
“What a smart play by CPC. We have worked together for years on various projects and discovered along the way our compatibilities and synergies,” said Xten co-founder Bill Renick.“I am excited about the future.”
“We are also proud that Commercial recognized the great team we have here. It is encouraging to know that our employees will continue as part of a growing company and as part of the fantastic community of Kenosha,” said Matthew Davidson, co-founder.
In recent years, Xten has been quickly growing in Kenosha. From June 2012 to June 2013, it grew by about 150 percent, reporting $50 million in revenue in 2013. Last year, Xten added a fourth shift to move to 24/7 production and partnered with Kenosha-based Gateway Technical College to offer a scholarship and internal training program.
The 73-year-old company was named to the Inc. 5000 list in October. Xten received the Employee Engagement & Commitment Award from Wisconsin Manufacturers & Commerce in February. It was the Kenosha Area Business Alliance’s 2011 Kenosha County Business of the Year.
“We see growth opportunity with the quality partnerships Xten has built over the years and look forward to further developing those relationships,” said CPC president Matthew O’Connor.
“Xten has the same core values that CPC has and bringing the two together only strengthens our ability to service our customers,” Bill O’Connor said.