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

Optical disc molder OEM getting into micromolding with acquisition of CDA

August 29, 2014 11:24 am ET

Optical disc replicator and molder Optical Experts Manufacturing Inc. of Charlotte, N.C., has expanded its core business and entered new high...    More

Polish injection molder Teknorubber up for sale

August 29, 2014 9:14 am ET

Polish plastic parts maker Teknorubber has been put up for sale following its insolvency filing in March 2014. The company is to be auctioned through ...    More

Image

Concours adding equipment as mold making business booms in Mexico

August 28, 2014 2:05 pm ET

Concours Mold Inc. is heading for a 50 percent increase in sales in Mexico this year after a $4 million upgrade of its plant in Huejotzingo, in the...    More

Image

Canadian mold maker Thibault adding to new operation in Mexico

August 27, 2014 3:19 pm ET

Canadian mold maker I Thibault Inc has purchased an established Mexican company, Tecnimoldes SA de CV, for a seven-figure-dollar-sum and renamed it...    More

Image

Lakeland Mold changes name to Avantech to reflect changing business

August 26, 2014 11:53 am ET

Lakeland Mold Co., which makes cast and machined aluminum tooling for the rotational molding industry, is evolving and has changed its name to Avantec...    More

Market Reports

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

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events