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

Pactiv expanding in North Carolina

March 5, 2015 4:18 pm ET

Pactiv LLC is spending more than $24 million on an expansion project in North Carolina that will create 59 new jobs.    More

Image

LiquiForm looks to fundamentally change blow molding process for bottles

March 5, 2015 12:13 pm ET

Those in the know are lifting the veil, just a bit, on fledgling technology being developed that would fundamentally change the way plastic bottles...    More

Image

VisiPak adds to customer mix, product offerings with Tulox acquisition

March 5, 2015 2:19 pm ET

VisiPak has acquired Tulox Plastics Corp., a maker of clear plastic packaging.    More

Image

Southeastern Container closing plant as Coke shifts bottle production

March 5, 2015 11:07 am ET

About 50 people will lose their jobs at a PET bottle making facility in Effingham, Ill., as container manufacturing shifts to Coca-Cola bottling...    More

Image

Auto supplier Motus adds more production as it buys Leon Interiors

March 5, 2015 10:52 am ET

Motus Integrated Technologies, a Tier 1 automotive interiors supplier, is getting bigger, adding the assets of Tier 2 supplier Leon Interiors Inc.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

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 billion 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

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events