UK investment trust buys US plastics companies

Published: October 1, 2012 6:00 am ET

Related to this story

Topics Mergers & Acquisitions, Injection Molding

LONDON (Oct. 1, 9:15 a.m. ET) — Caledonia Investments plc has, in partnership with Nova Capital Management, purchased five companies, including plastics firms, from Wichita, Kan.-based Latshaw Enterprises Inc. for 26 million pounds ($41.9 million) in cash.

The companies include Wescon Plastics LLC, a Wichta-based custom injection molder, and Coast Wire & Plastic Tech Inc., a Carson, Calif.-based maker of custom electronic wire and cable products.

Other companies included in the deal are Wescon Products Co., MC Electronics Inc. and Anderson & Forrester Inc. The five businesses have aggregate sales of around $90 million and employ more than 450.

Equity financing for the acquisition was provided by Caledonia and Nova, with the former investing $42 million and GSO Capital Partners, part of private equity firm Blackstone, and PNC Bank providing the debt financing.

“The businesses are cash generative and our investment has been structured so as to provide a running yield from year one,” said Duncan Johnson, a portfolio manager at Caledonia.

“Along with Nova and the Latshaw team we have developed an investment strategy which will see capital value being built and realized over the medium term,” he explained.

Tom Leader, an investment partner at Nova, added: “This transaction represents our fourth deal in North America, a region in which we are continuing to see strong deal flow and are looking to increase our presence going forward.”


Comments

UK investment trust buys US plastics companies

Published: October 1, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Injection molder, recycler Polyvulc USA puts itself up for sale

July 24, 2014 12:41 pm ET

Fred Farrell and Larry Lambiotte, founders of Polyvulc USA Inc. and its subsidiaries Polyvulc Tire Recycling Llc and Winnsboro Rubber Recycling LLC,...    More

Image

Contigo, Avex buy lets Newell Rubbermaid leapfrog new bottle development

July 22, 2014 4:11 pm ET

Newell Rubbermaid Inc. is ready to accelerate its move into the reusable water bottle business with the purchase of two on-the-go drinkware brands.    More

Image

Illinois injection molder expands

July 21, 2014 1:23 pm ET

Automotive supplier All-Rite Industries Inc. has added two new injection molding machines to its operations.    More

Image

Newell Rubbermaid to acquire Contigo brand

July 21, 2014 5:00 pm ET

Consumer products company Newell Rubbermaid Inc. has signed an agreement to acquire Ignite Holdings LLC, owner of the Contigo and Avex brands of...    More

Image

Huhtamäki to evaluate its films business

July 21, 2014 9:52 am ET

Finland-based plastics packaging group, Huhtamäki Oyj, has announced that it is evaluating its options regarding its films business, due to its growin...    More

Market Reports

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Plastics Recycling Market Review & Outlook 2014

This special report from Plastics News examines the North American plastics recycling industry and provides insight into indicators that impact market viability, including Resin pricing trends for virgin and recycled market material and historical Resin production trends for post- consumer and industrial waste.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

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

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events