Davis-Standard purchase of Circonix highlighted at ICE USA

By Don Loepp
Editor

Published: May 14, 2013 1:51 pm ET
Updated: May 14, 2013 1:55 pm ET

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.

Related to this story

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.


Comments

Davis-Standard purchase of Circonix highlighted at ICE USA

By Don Loepp
Editor

Published: May 14, 2013 1:51 pm ET
Updated: May 14, 2013 1:55 pm ET

Post Your Comments


Back to story


More stories

Image

2014 US machinery shipments up 6 percent

November 25, 2014 5:17 pm ET

Through the first nine months of 2014 U.S. shipments of primary plastics equipment — for injection molding, blow molding and extrusion —...    More

Image

Globalization brings sizable growth, primarily in Asia

November 25, 2014 1:40 pm ET

In 1990, the year after Plastics News published our first issue, there were 33,000 injection molding machines sold worldwide. Fast forward to 2013,...    More

Image

Taipei Plas vandal and German firm trade lawsuits

November 25, 2014 1:26 pm ET

Taiwan businessman Karma Tang, who splashed red paint at German firm Baumüller GmbH's Taipei Plas booth, is in a messy legal battle.    More

Image

Auxiliary equipment maker Ross expands in India

November 25, 2014 1:12 pm ET

U.S. auxiliary equipment maker Charles Ross & Son Co. is expanding in India, opening a new plant early next year in Pune.    More

Image

Deal adds U.K. plant to DelStar

November 25, 2014 12:47 pm ET

Schweitzer-Mauduit International Inc. (SWM) is acquiring certain assets from the advanced wound management division of London-based Smith & Nephew plc...    More

Market Reports

Plastics in Brazil - State of the Industry Report

This in-depth report examines the Brazilian plastics industry from a historical and geographical context. Our analysts provide insight on economic trends and forecasts, growing manufacturing sectors that utilize plastics, private investment opportunities, market environment challenges, and innovations in R&D.

Data tables and charts on producer prices, trade, plastics production and end market indicators is also included.

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

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

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

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

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

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

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events