The New Jersey Manufacturing Extension Program, Inc. (NJMEP) provided new business acquisition support through the Personal Business Advisor (PBA) program to FPI Thermoplastic Technologies, Inc. that resulted in a 25% increase in sales.
Current owners, Sebastian and Sam Murray, of FPI Thermoplastic Technologies purchased the Morristown, New Jersey business from their father, Brian Murray, in 1995. Brian Murray purchased the F P I division from Air Products and Chemicals, in 1978. The company was founded in 1950, and designs and manufactures custom and proprietary plastic products for industrial and retail markets. They currently employ 135 people and have annual sales of 13 million dollars. FPI customers include Fortune 500 companies such as McDonald’s, Target, Walmart, Walgreens, Tyco, Siemens, and Revlon.
FPI was introduced to NJMEP through the Morris Area Development Group as part of their economic development program. FPI had lost some business as a result of overseas competition and a significant reduction in orders from a major client. With these losses, FPI needed to evaluate their business strategy and growth plans.
NJMEP provided new business acquisition support by identifying target companies, conducting thorough business reviews of these companies, developing a Memorandum of Understanding, supporting initial negotiations and assisting in the final agreement. Shashi Parekh, NJMEP Personal Business Advisor, provided these services and worked closely with FPI for over two years.
One of the prospective target companies had a lucrative real estate deal, and was looking for options for his business. FPI’s merger was a “win-win” situation for both companies. Mr. Parekh met with the company, reviewed their business operations and then introduced the client to FPI. After a year of negotiations between the two companies, facilitated by NJMEP, they reached a final agreement. FPI acquired this two million dollar plastic business and increased their sales and plant capacity by 25%.
“NJMEP’s PBA network played a crucial role in identifying a win-win situation for both companies,” stated Sebastian Murray, FPI President. FPI had a number of measurable impacts from this project including a $2 million sales increase, new product offerings, new customers, and the ability to retain 20 jobs.
FPI has developed a long-term partnership with NJMEP to assist them in becoming more competitive and profitable. FPI, with assistance from NJMEP, has implemented lean manufacturing techniques to eliminate waste and improve plant efficiency. FPI and NJMEP are currently focusing on supply-chain management issues to improve their productivity and efficiency. “We have a long-term relationship with NJMEP and their PBA program has played a vital role in growing our business and to make us more competitive. We look forward to the continued relationship between our organizations” stated Sebastian Murray.