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

M&A deals in packaging hit record

January 28, 2015 1:49 pm ET

It's good to be in packaging these days. More precisely, it's good to be in packaging and decide to sell or merge.    More

Image

Sika opens negotiations to acquire Axson Technologies

January 28, 2015 12:17 pm ET

Specialty chemicals maker Sika AG has entered into exclusive negotiations with Axson SAS management and shareholders to acquire its epoxy and...    More

Image

Piovan buys majority stake in Italy's Penta

January 28, 2015 12:04 pm ET

Italian auxiliary equipment company Piovan SpA has acquired a majority stake in the Italian materials handling company Penta srl, based in Poggio...    More

Image

A. Schulman, Citadel continue buying blitz

January 27, 2015 11:32 am ET

A. Schulman Inc. and Citadel Plastics Inc. — two deal-happy materials firms — were at it again in the second half of 2014.    More

Image

It's becoming a seller's market for plastics firms

January 27, 2015 11:37 am ET

The pace of plastics mergers and acquisitions activity slowed a bit in the second half of 2014 — but market watchers have high expectations for ...    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

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 Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

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

More Events