Deal with Spectrum Plastics helps Pexco diversify into custom molding

By Michael Lauzon
Correspondent

Published: September 4, 2013 3:29 pm ET
Updated: September 10, 2013 9:28 am ET

Image By: Pexco Pexco CEO Neil Shillingford

Related to this story

Topics Mergers & Acquisitions, Medical, Extrusion, Injection Molding, Pipe/Profile/Tubing

Extrusion, meet injection molding. With a handshake, two big players in the fields are melding their expertise.

Profile extrusion major Pexco LLC is diversifying into custom injection molding by acquiring the Minneapolis-based operation of Spectrum Plastics Inc.

Pexco announced the deal Sept. 4, the same day Spectrum said it has renamed its Ansonia, Conn., business NPI Medical to identify its core business of medical molding.

Pexco's vice president of business development, Matthew Robida, called the Spectrum molding operation "a solid business with great customers and strong engineering." The plant processes "complex materials that feature prominently within some of Pexco's strategic markets," Robida said via email.

The Spectrum name will continue with the 160-employee Minnesota business under Pexco's ownership. The molding plant features two medical-grade clean rooms, about 40 injection molding presses from 12 to 600 tons, assembly and packaging services in a 105,000-square-foot building.

Pexco, based in Alpharetta, Ga., acquired the molding operation from former owner Minneapolis-based Spell Capital Partners LLC, which also owns NPI Medical. In May, Spell sold off its rapid prototyping business, Protogenic Inc. of Westminster, Colo., to injection molder Tenere Inc.

"Prior to the Minnesota sale, we spun out Ansonia because we wanted to keep it," Spell Managing Director Steve Jones said in a telephone interview. "It then transitioned to be more dedicated to medical markets."

For Pexco, the acquisition is a slight strategic shift but it allows the company to be more receptive to broader material opportunities, Pexco CEO Neil Shillingford said in a news release.

However, Pexco's business has been "specialty plastics conversion," Shillingford said.

Robida added that the company is familiar with many of the resins that Spectrum molds — although these are extrusion not injection grades. New to Plexco are implantable and bioabsorbable plastics used in Spectrum's medical sales.

About half of the Minnesota business' sales are in medical markets for goods like implantable surgical devices and fixtures. It also specializes in complex engineering resins for defense and aerospace products. The business has exploited successfully material conversions to performance plastics.

The acquisition is Pexco's second major deal this summer. In July it bought Scandia Plastics Inc., a specialty custom extruder in Plaistow, N.H. Pexco does about $200 million in sales from nine extrusion plants, according to Plastics News estimates. Earlier this year, the company sold its extruded sheet business and assets to Plaskolite Inc. and closed its Columbia, S.C., plant.

Pexco owner Odyssey Investment Partners LLC of New York also owns Peninsula Packaging Co., a thermoformer based in Exeter, Colo.

NPI will continue operating in its 66,000-square-foot plant in Ansonia, where it employs 85. In addition to molding it boasts production cells to speed prototypes to production. The company is experienced in liquid silicone rubber molding.

NPI recently completed its second Class 7 clean room and expanded its full-service toolroom and the company plans to add more production equipment, NPI sales director Terry Gleason said in a phone interview. About 75 percent of the Ansonia plant's sales are in medical markets for products in laboratory use, surgical devices and disposables.

NPI sales amount to about $15 million to $20 million per year.

"Speed to market is critical to our customers' success and we have all of the internal capabilities to meet their needs," said NPI Medical President Randy Ahlm. NPI Medical's legal name is Ansonia Holdings LLC. The company formerly ran a prototype operation in Brewster, N.Y., but moved those assets to Ansonia in January.


Comments

Deal with Spectrum Plastics helps Pexco diversify into custom molding

By Michael Lauzon
Correspondent

Published: September 4, 2013 3:29 pm ET
Updated: September 10, 2013 9:28 am ET

Post Your Comments


Back to story


More stories

Image

China's biggest fuel tank maker getting a US foothold

April 23, 2014 4:41 pm ET

The majority owner of China's biggest fuel tank maker is expanding its global automotive footprint with the acquisition of the fuel tank unit of...    More

Image

China's Shide Group, BASF unveil 'revolutionary' all-plastic window profile

April 23, 2014 9:10 pm ET

SHANGHAI — The PVC window profile market in Asia is expected to increase four-fold by 2025, and Chinese building products maker Dalian Shide...    More

Image

How CEO Santi is changing ITW

April 23, 2014 2:48 pm ET

Scott Santi is showing he can do more than just cut costs at Illinois Tool Works Inc.    More

Quality Vision buys ShapeGrabber

April 23, 2014 10:19 am ET

Quality Vision International Inc. of Rochester, N.Y., has purchased ShapeGrabber Inc., a maker of automated three-dimensional scanners, in a deal...    More

Some medical devices could get faster approval with new FDA rules

April 22, 2014 7:41 pm ET

The U.S. Food and Drug Administration is proposing an expedited approval for medical devices for devices aimed at the diagnosis or treatment of patien...    More

Market Reports

Market Data Book - Rankings & Lists

A one-stop download of Plastic News' exclusive annual lists and processor rankings containing essential data including sales, employees, end markets, materials and more.
EXCLUSIVE EXCEL FEATURE: full mailing address details for available plant locations.

Learn more

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Mold Making and Tooling Review and Outlook 2014 North America

This report provides in-depth analysis of the mold and toolmaking market for North America, including discussions of trends, opportunities, threats, the latest developments in production and labor and equipment trends impacting moldmakers.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

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

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events