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

Houston Plastic continues to grow with new press, controlled production area

October 1, 2014 11:32 am ET

Custom injection molder Houston Plastic Products Corp. has extended its clamp tonnage range and added an environmentally controlled molding area.    More

Image

RJG buys UK training group G&A

September 30, 2014 11:10 am ET

G&A Moulding Technology Ltd., a United Kingdom-based training and consultancy group, has been bought by RJG Inc., the U.S.-based training business.    More

Image

Ohio molder Denbro Plastics moves to new location

September 29, 2014 6:17 pm ET

Logo products injection molder Denbro Plastics Co. has moved to another plant within Toledo, Ohio, to streamline production and improve efficiency.    More

Image

Clariant extends reach into Asia with acquisition

September 29, 2014 9:54 am ET

Clariant International Ltd. is buying VitaPac (HK) Industrial Ltd., a Hong Kong-based company which produces desiccant packets for the healthcare...    More

Image

Nypro Healthcare continues to grow following Jabil acquisition

September 26, 2014 1:59 pm ET

Nypro Healthcare's newest medical device manufacturing facility offers 200,000 square feet of carefully configured Class 8 clean room molding and asse...    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

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

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

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

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

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

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events