Claerbout brothers recapitalize rotomolder Dutchland

By Bill Bregar
Senior Staff Reporter

Published: January 28, 2014 7:13 pm ET
Updated: January 28, 2014 7:18 pm ET

Related to this story

Topics Mergers & Acquisitions, Rotomolding

Brothers Carl and Daven Claerbout have recapitalized their Oostburg, Wis.-based rotational molder, Dutchland Plastics Corp., bringing in three investment firms and a new CEO from one of them — and Carl and Daven will remain in their roles and run the company day-to-day.

"My brother and I are anxious to work alongside our new partners in taking Dutchland to the next level," Daven said. He said the recapitalization came together on Dec. 31. Dutchland announced the news by issuing a news release Jan. 28. He said executives had already informed all employees, customers and suppliers.

Terms were not disclosed. But the three firms — two Chicago private equity firms, Isleworth Capital Partners and Omni Investors Group, and Cleveland investment firm Squire Ridge Co. — now are majority owners of Dutchland Plastics. Carl and Daven Claerbout maintain "meaningful ownership" and will remain at the company, according to Steven Ross, president of Squire Ridge. A news release issued by Dutchland said the brothers will remain "significant investors."

A breakout of ownership percentages was not released.

The new CEO is Clyde Swoger, a partner in Isleworth Capital Partners. "Dutchland Plastics is poised for significant growth — both through internal and external development — and it will be a pleasure working with the current management team and employees to take the company to its next stage of development," Swoger said.

Dutchland employs about 200 at its headquarters plant in Oostburg, north of Milwaukee, and a smaller factory in Sherill, N.Y., between Syracuse and Utica. The company is the 20th largest rotational molder in North America, with rotomolding-related sales of $25 million, according to Plastics News most recent ranking. Total corporate sales are $32 million.

Daven Claerbout said he and his brother did not have the financial capability to keep Dutchland growing. Their parents, Bill and Nancy, took over a troubled plastics factory in 1967. Carl and Daven purchased the company from their parents in 2006. "For Carl and me, it's a great fit. We're really sold on it," he said.

Following the recapitalization, the company has "adequate capital to take advantage of a number of growth opportunities," Ross said, among them adding capital equipment and increasing the work force to meet the demand of "very large accounts" it has secured recently.

Carl said: "The entire Claerbout family is thrilled that Dutchland Plastics' new partners appreciate the special corporate culture that has been the key to Dutchland Plastics' success."

The brothers and their new financial partners credit Dutchland employees. Philip Stamataky, a principal at Omni Investors Group, said Dutchland has turnover in the low single digits.

The rotomolder serves a variety of markets, including recreational equipment, industrial equipment and lawn and garden.

Crain’s Cleveland Business contributed to this report.


Comments

Claerbout brothers recapitalize rotomolder Dutchland

By Bill Bregar
Senior Staff Reporter

Published: January 28, 2014 7:13 pm ET
Updated: January 28, 2014 7:18 pm ET

Post Your Comments


Back to story


More stories

Image

Xten may shut down, working on sale to Commercial Plastics

October 29, 2014 5:49 pm ET

Xten Industries LLC is working on a sale to Commercial Plastics Co. of Mundelein, Ill. Xten, an injection molder based in Kenosha, Wis., filed a...    More

Image

TMI has new private equity owner

October 27, 2014 2:03 pm ET

Pittsburgh-based TMI International LLC, a maker of PVC-based film, panel and sheet products as well as PVC-coated curtains and screens, has been...    More

Image

Deal puts Convergence Packaging under Comar's umbrella

October 24, 2014 2:00 pm ET

Convergence Packaging Holdings LLC, itself a product of mergers, now is joining together with Comar LLC.    More

Image

Akro-Plastic buying German subsidiary from Metabolix

October 24, 2014 3:32 pm ET

Akro-Plastic GmbH, a Niederzissen, Germany-based plastic compounder, has purchased the assets of Metabolix Inc.'s subsidiary in Germany.    More

Image

Investment firm buys Ontario cap molder

October 23, 2014 2:01 pm ET

A company whose varied interests include food and refrigerated transportation businesses is now moving into plastic caps.    More

Market Reports

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 million dollar 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

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

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