Balda builds medical business with HK acquisition

By Roger Renstrom
Correspondent

Published: January 4, 2013 6:00 am ET

Related to this story

Topics Mergers & Acquisitions, Medical, Injection Molding

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

ZF finalizes deal to buy TRW, creating another global auto supply giant

September 15, 2014 1:09 pm ET

TRW Automotive Holdings, in a supply chain megadeal that has been in the works since mid-July, said Sept. 15 it has agreed to be acquired by German...    More

Image

Germany's Lehmann & Voss buys U.S.-based Performance Compounding

September 12, 2014 11:36 am ET

German compounding firm Lehmann & Voss & Co. KG has acquired Performance Compounding LLC for an undisclosed price.    More

Image

ATS goes global with acquisition of M+W Process Automation

September 10, 2014 2:49 pm ET

ATS Automation Tooling Systems Inc., a maker of factory automation systems in Cambridge, Ontario, has agreed to buy a German company M+W Process...    More

Image

DS Smith adds to footprint with Croatian injection molding acquisition

September 10, 2014 2:05 pm ET

DS Smith plc, the London-headquartered packaging giant, has announced the acquisition of Kaplast dd, a Croatian injection molding company.    More

Image

Par-Pak Europe buys Holfeld Plastics

September 10, 2014 1:58 pm ET

Holfeld Plastics Ltd., the Ireland-based packaging manufacturer, has been bought by Par-Pak Europe (PPE) for an undisclosed sum.    More

Market Reports

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

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

Upcoming Plastics News Events

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

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

More Events