Mario Verdi and John Domici, Jr. founded Gem Plastics, Inc., in 1999, and they were joined by Frank Garza, as a third partner in 2000. Located in Randolph, New Jersey, Gem Plastics and its subsidiary Creative Plastics and Designs Inc., (CPD) offers complete services from design to finished products of custom plastic and metal parts to their customers. Customers include, IBM, Hill International, Kodak, AMP, Eagle, Dover, Graco, and others. Gem Plastics currently has three employees and annual sales of $5 million.
CPD provides creative product and processing solutions to their clients to achieve target function, quality and delivery at lower costs. CPD has an excellent network of companies to produce plastic and metal parts via various processes, such as Injection Molding, Profile Extrusion, Vacuum Forming, Blow Molding, Aluminum Extrusion and Metal Stamping.
The Morris Area Development Group introduced New Jersey Manufacturing Extension Program, Inc. (NJMEP) to Mario Verdi, President of Gem Plastics, in 1998 when he was the Plant Manager for Risdon, AMS. Mario Verdi, looking for an opportunity to start his own business, contacted NJMEP and began working with Shashi Parekh, NJMEP Personal Business Advisor (PBA).
NJMEP provided support to Gem Plastics to develop a business plan, to identify potential businesses to acquire and identify financing to acquire a business. Mr. Parekh provided assistance with Gem’s business plans and provided input to reflect new strengths and opportunities for the company. Three plastic companies who were interested in selling their business were identified and were introduced to Mr. Verdi. All three companies pros and cons were discussed and Mario made an offer for one business, which was not accepted. NJMEP worked with GE Capital Corp, to review Gem Plastics’ business plans and to provide financing for their purchase of another plastic company, Creative Plastics and Design Inc, which was 15 years old and located in Milford, NJ. Mr. Parekh worked with GE Capital and Gem Plastic in resolving various credit and asset issues to successfully complete the transaction.
“Timely support, PBA’s intuition and network played a crucial role in driving the project to a successful buy out” stated Mario Verdi. Gem Plastics obtained financing to acquire a new business with approximately $5 million in sales. The new company purchases over $3 million in products from various New Jersey companies supporting over 30 jobs. “A 1999 phone call to NJMEP started an incredible journey of entrepreneurship, NJMEP partnership and personal friendship to acquire a business”, explained Mario Verdi.
Gem Plastics and NJMEP plan on working together on the projects to lower material and process costs for their customers. NJMEP is currently providing a strong link between Creative Plastics and a New Jersey molder to have an alliance for development and production of additional new products, which will be beneficial for the company, the New Jersey molder and New Jersey’s economy. Mario Verdi stated, “NJMEP’s support was very crucial in achieving my lifetime goals of having my own business, and their ongoing support would play an important role to grow my business and make it more profitable.”