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

Flexibility for complexity key for Brampton

September 16, 2014 11:26 am ET

Blown film machinery maker Brampton Engineering Inc. is well positioned to meet growing demand for complex film structures, highly customized...    More

Image

US plastics machinery market still gaining strength in second quarter

September 15, 2014 5:01 pm ET

U.S. plastics machinery shipments in the second quarter continued to outperform activity in 2013, according to data from Society of the Plastics...    More

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 Autom...    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