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

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

German auto supplier Dr. Schneider opens second US plant

April 17, 2014 12:57 pm ET

Dr. Schneider Kunststoffwerke GmbH, a German supplier of plastic interior auto parts, has opened a $29 million manufacturing plant in Russell Springs,...    More

Spain's Cristian Lay Group buys two materials units of bankrupt LSB

April 17, 2014 11:11 am ET

Spanish industrial conglomerate Cristian Lay Group has purchased two of the bankrupt Spanish PET packaging group La Seda de Barcelona.    More

Negri Bossi's new owners may 'bring significant manufacturing' to US

April 16, 2014 1:09 pm ET

Italian plastics equipment major Negri Bossi may “bring significant manufacturing of injection molding machines back to the United...    More

Image

Adding flavor to capture sales

April 16, 2014 4:03 pm ET

Water bottles increasingly are designed and molded with filters and infusers to hold fruit, vegetables or herbs to give water a different taste.    More

New Tigre, ADS JV aims to open more doors for Tigre in US

April 16, 2014 12:15 pm ET

A new joint venture between Tigre S.A. Brazil, a leading PVC pipe maker, and Advanced Drainage Systems Inc., the world's largest high-density polyethy...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

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

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events