Image By: Plastics News photo by Don Loepp Bob Preston, left, CEO of Davis-Standard LLC, with Andre Icso of Circonix Technologies, at the ICE USA trade show in Orlando, Fla.
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Topics Mergers & Acquisitions, Machinery
Companies & Associations Davis-Standard LLC
ORLANDO, FLA. — Davis-Standard LLC highlighted its aftermarket business at the ICE USA trade show, as well as its recent purchase of Circonix Technologies LLC.
Davis-Standard, a Pawcatuck, Conn.-based extrusion and converting machinery manufacturer, exhibited at the Orlando show around the corner from a separate booth occupied by Ringwood, N.J.-based Circonix.
But the two exhibits each had signage referencing the company's relationship, which was cemented last fall when Davis-Standard bought the systems integrator.
At the time, Circonix was actually looking to acquire another company, but ended up being acquired by Davis-Standard instead.
"We were at a point in our company's growth where we couldn't grow organically fast enough," said Andre Icso, vice president at Circonix.
Circonix, which was founded in 1989, did most of its work on the liquid coating side of the extruder market. Icso has long wanted to diversify the company into other parts of the extrusion sector, but it was always difficult to get up to speed when Circonix staff was busy keeping up with demand in the coating side.
Now that the company is owned by Davis-Standard, it has the necessary expertise for other extrusion markets close at hand. So now Circonix expects to have a more balanced product mix.
"They have a worldwide sales force. They are strong in the extrusion side, in new equipment. So the match between us is good; there's very little overlap," Icso said.
For Davis-Standard, the deal was all about beefing up aftermarket services, said CEO Bob Preston.
Many multinational packaging companies are interested in improving the throughput of their extrusion equipment through the work of companies like Circonix.
Icso said a typical customer can upgrade an existing line with new drive- and control-systems for roughly 60 percent of the cost of a new line.
The Circonix deal was evidence that Davis-Standard's owner, Canadian investment firm Onex Corp., remains bullish on plastics machinery. Onex, which formerly owned Husky Injection Molding Systems Ltd., bought Davis-Standard in 2011. Since then, it has also purchased the world's largest plastics machinery manufacturer, KraussMaffei Group.
Preston said Onex is keeping Davis-Standard and KM separate. With strong first-quarter results and a good pipeline of business booked for the rest of the year, the ownership group is happy with its plastics machinery investments.
Davis-Standard also featured its dsX flex-pack extrusion coating technology at ICE USA. The company said the lines can handle a wide range of applications, while cutting waste and offering lower overall costs.