M&A activity picking up in the molding sector

By Frank Antosiewicz
Correspondent

Published: April 6, 2012 6:00 am ET

Related to this story

Topics Mergers & Acquisitions, NPE 2012

ORLANDO, FLA. (April 6, 11 a.m. ET) — Even when the economy was in a downturn there were sales of smaller molders. Now, with business picking up, there is a lot more interest in the buying and selling of those molders, according to officials at Molding Business Services.

“Even in a down economy – in 2008, 2009 and 2010 we were closing sales. We have one closing next week…and we’ve had four deals in the last five months,” said Terry Minnick, president of Molding Business Services during an NPE interview.

Minnick, his son Joel and Andrew Munson take part in the Florence, Mass.-based business that specializes in advising smaller processors about mergers and acquisitions. They also do executive placements.

“Our sandbox is still the plastic processors, mostly molders in the 3 to 20 million dollar range,” he said.

Minnick said that they’ve developed a 26,000 file database and Munson added that in preparing for NPE, they sent out 60,000 emails.

“The key to selling is to know who your buyer is,” said Minnick, who has owned a plastic company and has many contacts in the industry.

He said that they’ve found that there are owners willing to sell their companies either because they want to retire or go out, or even to handle financial difficulties. The difference now is that there are more buyers interested than a few years ago.

“I gave a speech at SPE in 1995 about the industry seeing a lot of consolidation. Here it is 17 years later and we still have a lot room to go,” he said.

Minnick added that there is a lot of pent-up demand and that it is even a better time to sell.

He said that as an advisor and deal-maker, he could not divulge the deals he’s involved in. However, one buyer, George Danis, who bought Restech Plastic Molding in 2010, agreed to comment.

“We were able to retain all the people and move them all to Hudson [Mass.],” said Danis, who consolidated the business from three locations.

Now, it runs 35 presses from 50-750 tons and has 125 employees.

Minnick predicted that MBS will be involved in eight to nine deals this year.

“It depends on the industry you are serving. Medical device and packaging have been doing well, and automotive is doing well today,” said Munson.

He added that being in a niche situation specializing in such processes as micro-molding or LSR are very advantageous in deal-making these days.

Minnick added that they also do 25-30 individual placements as well.


Comments

M&A activity picking up in the molding sector

By Frank Antosiewicz
Correspondent

Published: April 6, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

China's biggest fuel tank maker getting a US foothold

April 23, 2014 4:41 pm ET

The majority owner of China's biggest fuel tank maker is expanding its global automotive footprint with the acquisition of the fuel tank unit of...    More

Image

How CEO Santi is changing ITW

April 23, 2014 2:48 pm ET

Scott Santi is showing he can do more than just cut costs at Illinois Tool Works Inc.    More

Quality Vision buys ShapeGrabber

April 23, 2014 10:19 am ET

Quality Vision International Inc. of Rochester, N.Y., has purchased ShapeGrabber Inc., a maker of automated three-dimensional scanners, in a deal...    More

Image

Pregis Corp. to get new owner

April 22, 2014 11:44 am ET

The private equity owner of Pregis Corp. is selling off its North American operations for an undisclosed sum.    More

PolyQuest spins off FiberQuest unit

April 18, 2014 10:14 am ET

PolyQuest Inc. has spun off its FiberQuest unit — which distributes polyester staple fibers and cotton — as a separate company.    More

Market Reports

Market Data Book - Rankings & Lists

A one-stop download of Plastic News' exclusive annual lists and processor rankings containing essential data including sales, employees, end markets, materials and more.
EXCLUSIVE EXCEL FEATURE: full mailing address details for available plant locations.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Mold Making and Tooling Review and Outlook 2014 North America

This report provides in-depth analysis of the mold and toolmaking market for North America, including discussions of trends, opportunities, threats, the latest developments in production and labor and equipment trends impacting moldmakers.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events