Balda builds medical business with HK acquisition

By Roger Renstrom
Correspondent

Published: January 4, 2013 6:00 am ET

Related to this story

Topics Medical Mergers & Acquisitions Injection Molding
Companies & Associations

BAD OEYNHAUSEN, GERMANY (Updated Jan. 4, 12:15 p.m. ET) — Balda AG acquired C. Brewer Co. and two Team HK units Dec. 31, as part of Balda’s buy-and-build strategy for its medical segment.

The acquisitions give Bad Oeynhausen-based Balda its first U.S. manufacturing presence and a strong footprint in the U.S. health-care market, according to CEO Dominik Müser.

Balda bought the custom injection molding and mold-making operations of family-owned C. Brewer in Anaheim, Irvine and Ontario, Calif., for about 33 million euros ($43.7 million) including a performance-related earn-out clause of 3.8 million euros ($5 million).

Balda also acquired family-owned HK Plastics Engineering Inc. and HK Screw Machine Products, which are located in separate facilities in Oceanside, Calif. Terms were not disclosed.

Balda wanted its own production locations in the U.S., which is the world’s largest health-care market, Müser said. Balda currenly makes medical technology, pharmaceutical and diagnostics products in Germany and electronic products in Ipoh, Malaysia. The firm has a sales subsidiary in the U.S.

The Balda group generated sales of 24.7 million euros ($30.8 million) for the six months ended June 30 and 66.3 million euros ($85.7 million) for calendar 2011.

The company was founded in 1908 in Dresden, Germany, as a manufacturer of cameras.

At its California sites, C. Brewer has a total of 135,000 square feet and more than 75 injection molding presses. It employs about 500. According to Balda, C. Brewer expects 2012 sales of about $48 million, mainly from the medical, biotechnology, recreational sports and automotive markets. About one-third of C. Brewer’s revenues come from medical clients and 50 percent from optics, Balda said.

Principals were brothers Chuck Brewer III, CEO, and Michael Brewer, president. The company has family roots going back to 1966.

In late 2011, C. Brewer bought the assets of the former Kipp Group plant in Ontario from CareFusion Corp. and has dedicated the site to the molding and assembly of medical devices.

Balda said the purchase price is based on a multiple of less than seven times C. Brewer’s expected 2012 adjusted earnings before interest, taxes, depreciation, and amortization.

Müser said HK’s focus on diagnostics markets matches C. Brewer’s with the medical business. Medical customers account for more than 80 percent of HK’s sales.

Balda will finance its purchase of 100 percent of the HK shares with existing liquidity. The purchase price is based on a multiple of less than seven times the expected adjusted EBITDA in 2012.

Team HK employs 80 and operates 31 injection presses. Balda said HK expects 2012 sales of around $15 million and positive operating EBITDA.

Balda’s acquisition of the HK companies created extensive media coverage in Germany and caught the attention of HK relatives there. After all, it was about German company Balda acquiring a U.S. enterprise that a German immigrant created.

Team HK founder Horst Krippner was born in Seussen, Germany, completed a toolmaking apprenticeship in Nürnberg and moved to Canada, joining Husky Inc. as its first injection mold maker. He moved to Los Angeles, working as manufacturing vice president for Setco Inc. and, in 1974, started his own injection mold-making business.

Krippner’s three sons sold the businesses to Balda. Balda extended employment contracts to Gerry Krippner, president and CEO, and Ron Krippner, vice president of sales. Peter Krippner was chief financial officer.

M&A International Inc., along with partner firms Angermann M&A International GmbH and Masi Ltd., advised Balda on the recent transactions.


Comments

Balda builds medical business with HK acquisition

By Roger Renstrom
Correspondent

Published: January 4, 2013 6:00 am ET

Post Your Comments


Back to story


More stories

Image

TPUs finding applications in drug-delivery applications

March 30, 2015 12:56 pm ET

Lubrizol Corp. is sending its thermoplastic polyurethane products into medical products, foam and film.    More

Image

Eastman Chemical expanding Tritan co-polyester capacity

March 27, 2015 10:00 am ET

Eastman Chemical Co.'s Tritan-brand co-polyester business continues to grow, with 35 million pounds of capacity added late last year and a second...    More

Image

Getting a real feel for how 'vinyl saves lives'

March 27, 2015 6:00 am ET

While I'm certainly not shipping off to Africa anytime soon, I got a taste of what medical professionals go through in the fight against Ebola and...    More

Image

Flextronics launches global injection molding, tooling unit

March 26, 2015 4:29 pm ET

Flextronics International Ltd. (Booth S34125) is officially launching Precision Plastics, a global injection tooling and manufacturing unit, as a...    More

Image

Intertech Medical adding presses, people

March 23, 2015 3:28 pm ET

Colorado's Intertech Medical has added five new injection molding presses and expects to add up to another four machines to keep up with a growth in s...    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

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

Plastics in Mexico - State of the Industry Report

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

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

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

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

More Events