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

Small is beautiful in Nissei's newest press

November 21, 2014 2:14 pm ET

Responding to customer demand for flexibility, Japanese plastics-equipment manufacturer Nissei Plastic Industrial Co. Ltd. is demoing a caster-...    More

Image

Three advancements have driven injection molding technology

November 21, 2014 6:00 am ET

Injection molding technology has made major advances in the last 25 years, from largely a world of shoot-and-ship to doing as much as possible at the ...    More

Image

Netstal, Electra Form team up for PET preform partnership

November 20, 2014 3:15 pm ET

The Netstal division of Krauss-Maffei Corp. is teaming up with Electra Form Industries in a partnership to offer PET preform machines and molds as a...    More

Image

Thomson Plastics opens N.C. plant

November 20, 2014 3:12 pm ET

Custom injection molder Thomson Plastics Inc. has opened a new manufacturing facility in Lexington, N.C.    More

Image

Coveris changes culture, eyes IPO

November 20, 2014 1:40 pm ET

CEO Gary Masse has a simple message, and some new math, for everyone at Coveris Holdings Corp. Get on board or get out of the way.    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

Learn more

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 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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events