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
Companies & Associations

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

Reifenhäuser acquires German spinneret company Enka Tecnica

April 17, 2015 9:31 am ET

Germany-based Reifenhäuser GmbH & Co. KG, a major manufacturer of extrusion equipment, has announced that it is acquiring Enka Tecnica GmbH, a German ...    More

Image

Spain's Grupo Antolin to buy Magna's interiors business

April 16, 2015 12:33 pm ET

Spain's Grupo Antolin has reached an agreement to purchase Canadian auto supply giant Magna International Inc.'s interiors unit in a deal valued at...    More

Image

Madison buys Ferry Industries

April 16, 2015 5:22 pm ET

Ferry Industries, the largest manufacturer of rotational molding machinery, was purchased by Madison Industries, a Chicago holding company that is...    More

Image

Caplugs gets new private equity owner

April 16, 2015 11:17 am ET

Caplugs, a major producer of caps, plugs, tubing, netting and other protective goods for industry, has a new owner.    More

Image

A. Schulman, Citadel discuss the $800 million deal

April 15, 2015 1:45 pm ET

The $800 million match of materials maker A. Schulman Inc. and Citadel Plastics felt good from the start. “Everything in our first meetings show...    More

Market Reports

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events