Deal takes Graham Partners' blow molding group into Georgia

By Jim Johnson
Senior Staff Reporter

Published: February 14, 2014 1:27 pm ET

Related to this story

Topics Packaging, Mergers & Acquisitions, Blow Molding
Companies & Associations Graham Partners Inc.

Graham Partners is taking another step in creating a nationwide network of regional blow molding companies, this time striking a deal to move into the Southeast.

The Newtown Square, Pa.-based private equity firm, through its Convergence Packaging affiliate, is acquiring Precision Medical Inc. of Hoschton, Ga., near Atlanta.

PMI, while starting out as a supplier to the health care industry, now focuses on producing both PET and high density polyethylene bottles and containers for the food and household chemicals industries.

“We are really trying to seek out and identify strong regional and niche blow molders and we saw PMI as another one of those examples of someone who has built a nice presence in an attractive market in a great geographic location,” said Ross Bushnell, CEO of Convergence Packaging, in a telephone interview.

“It just made sense for us all the way around,” he said.

Terms of the deal were not disclosed, but PMI joins Paradigm Packaging Inc. of Saddle Brook, N.J., and Scandia Plastics LLC of Sheboygan, Wis., in the Convergence Packaging blow molding platform. Paradigm also has operations in Upland and Rancho Cucamonga, Calif., near Los Angeles.

“What we’ve seen is a lot of larger companies consolidating across the industry. There’s a lot of regional blow molders who are strong. But this market has seen significant consolidation. I think when you get to a certain size, it becomes really difficult to take care of local accounts and local customers,” Bushnell said.

“So our strategy is to go and identify these local, regional niche players and keep them focused that way. So we’re not trying to roll them into one big national company. We know the big guys do great at what they do. What we want to do is be the best regional player in every market we participate in,” he said.

Part of that regional strategy, however, does include the idea of having coverage around the country. That would allow Convergence Packaging companies to support one another.

“We do like the notion of having a nationwide footprint. No question. We think that helps the regional guys, too,” Bushnell said.

“We see opportunities to use PMI as a baseline for expansion in the Southeast and helping us to reach that area on behalf of the other two businesses, Scandia and Paradigm. So we’re very excited,” he said.

Paradigm makes bottles and jars for the vitamin, nutritional and over-the-counter drug and pharmaceutical markets. Scandia makes bottles, containers and light industrial parts for a variety of markets, including medical diagnostics, healthcare, household and industrial chemicals.

Paradigm was acquired by Graham Partners in December and Scandia in October 2012.

Bushnell and PMI founder James Hinshaw were introduced by a mutual friend and it took about six months for both sides to come together on a deal.

“The Graham Partners and Convergence team made it clear from the outset that they were committed to our market, to our customers and to our people,” Hinshaw said in a statement.

PMI runs around the clock during the week and as needed on weekends, Bushnell said. Operations include a manufacturing plant and a distribution center, both in the Atlanta area.

“We’re starting to reach a geographic spread that looks more national, and we want to add to that,” Bushnell said. “We certainly are not done.”


Comments

Deal takes Graham Partners' blow molding group into Georgia

By Jim Johnson
Senior Staff Reporter

Published: February 14, 2014 1:27 pm ET

Post Your Comments


Back to story


More stories

Image

Pregis Corp. to get new owner

April 22, 2014 11:44 am ET

The private equity owner of Pregis Corp. is selling off its North American operations for an undisclosed sum.    More

Europe's bag use still expected to climb despite possible bag restrictions

April 22, 2014 9:29 am ET

Ceresana, a Germany-based research company, has released a report forecasting that by 2020 the sales volume of bags and sacks in Europe will reach 9....    More

DuPont: Asia's food packaging market at a major transition point

April 21, 2014 1:26 pm ET

DuPont Co. touted its packaging innovations and applications, and updated the firm's commercial status at a media event two days before the Chinaplas ...    More

Image

Savvy customers follow raw material prices as closely as processors

April 21, 2014 2:25 pm ET

Savvy customers closely follow the prices of raw materials. The result: in the film and sheet segment of the plastics industry, even if processors...    More

PolyQuest spins off FiberQuest unit

April 18, 2014 10:14 am ET

PolyQuest Inc. has spun off its FiberQuest unit — which distributes polyester staple fibers and cotton — as a separate company.    More

Market Reports

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

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

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