SURGOINSVILLE — An Indiana company has acquired local fabricator Contour Industries in the Phipps Bend Industrial Park.
Contour co-founder and President G. Keener Mallicote said Friday the acquisition by Cardinal Equity Partners of Indianapolis is good news for the company and could mean new jobs for the community. Contour employs about 80 people in Hawkins County, and Mallicote said another 50 employees could be added to the company’s rolls.
“I feel like these people can really grow the company,” Mallicote said. Contour got its start in a 3,000-square-foot former welding shop in 1985 as a maker of clock glass for home appliances. Today, it has grown to become the second-largest fabricator in the United States for the home appliance industry. Components that pass through its operations are supplied to various appliance makers including Whirlpool, General Electric, Electrolux, Viking and Wolf. Products include refrigerator shelves, oven doors, washer lids, dryer fronts, and digital control panels.
Mallicote said the company has been gaining market share every year. From its current 110,000-square-foot facility, Contour has experienced sales growth in 10 of the past 11 years, with an average annual growth rate of 19 percent. It recently completed construction of an additional 60,000-square-foot plant that will triple production capacity.
“I think with this new plant, they can really step it up,” Mallicote said of the new owners. The expanded operations will provide a new high-speed continuous process with in-line edging, drilling, tempering and bending capabilities. The process was designed to furnish commercial, residential, solar and automotive markets, as well as the appliance market, and is expected to be production ready by April.
Mallicote said Contour fits Cardinal’s business mission — to purchase good companies with good management and grow them. According to its Web site, Cardinal Equity Partners is a private investment partnership that seeks to acquire or assist management teams in re-capitalizing lower- and middle-market businesses located in the central portion of the United States. The company was established in 1993.
Mallicote said Cardinal plans to add to Contour’s current sales force to help boost sales for the older plant and to develop sales for the new plant.
Mallicote, who co-founded Contour Industries 25 years ago and has been at the helm ever since, will step down after a transition period. He said he’s looking forward to the future. “This sale provides a great opportunity for me personally, as I can now pursue other ambitions after 25 years in the glass fabrication business. It is also a great opportunity for Contour’s people and the community as a whole to be part of the rapid growth plan Cardinal has for Contour. I will be eternally grateful to each Contour person for all that we were able to accomplish together and look forward to their future success,” Mallicote said.
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