Is pendulum swinging back toward strategic acquisitions?

By Bill Bregar
Senior Staff Reporter

Published: July 2, 2013 11:26 am ET
Updated: July 2, 2013 11:28 am ET

Related to this story

Topics Mergers & Acquisitions, Molds/Tooling

BRISTOL, CONN. — It looks like a mini-trend: private equity owners selling major plastics-related businesses to strategic buyers like Barnes Group Inc.

Bristol-based Barnes bought Synventive Molding Solutions Group from Littlejohn & Co. LLC. Nordson Corp. of Westland, Ohio, bought the Xaloy screw and barrel business and EDI flat dies.

Both of those deals happened in 2012. Though Barnes and Nordson are totally different from each other, both acquisitions have a basic similarity: Barnes and Nordson are broad-based industrial companies that have diversified by picking up firms that give them broad exposure to the wide-ranging plastics industry.

Xaloy is a major component manufacturer for the entire plastics industry. And Synventive hot runners are used in injection molding, by far the biggest plastics segment.

Officials of Barnes and Nordson have said they want to buy more plastics-related companies. Both are publicly traded.

And this year, plastics machinery manufacturer Milacron LLC bought Mold-Masters Ltd., a big Canadian hot-runner maker, from an investment firm. The deal brings together hot runners and Milacron’s DME mold components. (Milacron is owned by private equity.)

Is this the start of a major trend? Not necessarily, said Patrick Dempsey, who is Barnes’ president and CEO. “From my perspective, I’m not sure what all the motivations of the various other companies are,” he said. “But for us, what I would highlight is that we clearly saw Synventive as a very attractive business aligned very well with what was our overall strategy.”

Did Barnes look at buying Mold-Masters? Or how about Xaloy/EDI? Dempsey said: “We don’t comment on those businesses that we actively participate [in], are pursuing or we’re looking at.”

Mold-Masters and Synventive compete against each other. But the prices were wildly different. Barnes paid $335 million to buy Synventive, which generated annual sales of about $160 million in 2012. Milacron plunked down $950 million for Mold-Masters, which had 2012 sales of $271 million.


Comments

Is pendulum swinging back toward strategic acquisitions?

By Bill Bregar
Senior Staff Reporter

Published: July 2, 2013 11:26 am ET
Updated: July 2, 2013 11:28 am ET

Post Your Comments


Back to story


More stories

Image

Quick-Start manifolds designed to complement Rheo-Pro hot runners.

December 17, 2014 6:00 am ET

MHS Mold Hotrunner Solutions of Georgetown, Ontario, has introduced the pre-engineered Quick-Start line of hot runner manifolds, designed to...    More

Mold maker I. Thibault plans to invest more capital in Mexico

December 16, 2014 1:03 pm ET

Canadian mold maker I. Thibault Inc. plans to invest more capital in its wholly owned Mexican subsidiary, which it started operating in the summer.    More

Image

Indian mold maker Vasantha sees 'great potential' in Mexico

December 16, 2014 12:52 pm ET

Indian mold maker Vasantha Tool Crafts Pvt. Ltd. has appointed its first sales representative in Mexico, 15-year plastics industry professional Eric...    More

Image

Plastikos, Micro Mold working with local high school

December 15, 2014 6:00 am ET

The companies donated a 60-ton Demag injection press to the school, and Micro Mold’s general manager has worked with the high school's tool...    More

Image

UK recycler Eco Plastics sold to German investment group

December 12, 2014 11:19 am ET

Recycler Eco Plastics has been bought by Aurelius AG, a Grünwald, Germany-headquartered investment firm, for an undisclosed sum.    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

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

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

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