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

Bayer spinning off plastics business

September 18, 2014 8:49 am ET

Bayer AG will spin off its MaterialScience plastics group into a separate, publicly-traded company within the next 12 to 18 months.    More

Image

Smartphone work adds 52 percent to sales for China's Eva Precision

September 18, 2014 4:37 pm ET

Growth in supplying the smartphone and automotive industries helped Chinese processor Eva Precision Holdings Ltd. push injection molding sales up 52...    More

Image

Nolato Contour beefs up white room molding capabilities

September 18, 2014 11:56 am ET

Nolato Medical has extended its controlled environment options to include a white room at its Baldwin, Wis., Nolato Contour plant.    More

Badger buys competitor Joseph Homa

September 17, 2014 4:04 pm ET

Badger Plug Co. has extended its protective plugs customer base by acquiring and closing a rival, Joseph Homa Consultants Inc. of Montreal.    More

Image

Georg Fischer closing SC pipe plant

September 17, 2014 2:58 pm ET

Georg Fischer Central Plastics LLC (GFCP) closed its manufacturing operation for pipe components in Abbeville, S.C., on Sept. 15, putting 17 employees...    More

Market Reports

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

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

Upcoming Plastics News Events

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

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

More Events