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

China's biggest fuel tank maker getting a US foothold

April 23, 2014 4:41 pm ET

The majority owner of China's biggest fuel tank maker is expanding its global automotive footprint with the acquisition of the fuel tank unit of...    More

Image

How CEO Santi is changing ITW

April 23, 2014 2:48 pm ET

Scott Santi is showing he can do more than just cut costs at Illinois Tool Works Inc.    More

Quality Vision buys ShapeGrabber

April 23, 2014 10:19 am ET

Quality Vision International Inc. of Rochester, N.Y., has purchased ShapeGrabber Inc., a maker of automated three-dimensional scanners, in a deal...    More

Some medical devices could get faster approval with new FDA rules

April 22, 2014 7:41 pm ET

The U.S. Food and Drug Administration is proposing an expedited approval for medical devices for devices aimed at the diagnosis or treatment of...    More

Image

Two Ohio groups team up to accelerate development of future medical devices

April 22, 2014 9:55 am ET

The Austen BioInnovation Institute in Akron and Cleveland-based design specialists Nottingham Spirk announced a strategic partnership that the two org...    More

Market Reports

Market Data Book - Rankings & Lists

A one-stop download of Plastic News' exclusive annual lists and processor rankings containing essential data including sales, employees, end markets, materials and more.
EXCLUSIVE EXCEL FEATURE: full mailing address details for available plant locations.

Learn more

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

Mold Making and Tooling Review and Outlook 2014 North America

This report provides in-depth analysis of the mold and toolmaking market for North America, including discussions of trends, opportunities, threats, the latest developments in production and labor and equipment trends impacting moldmakers.

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