Spell Capital buys plastic drain tile maker

By Catherine Kavanaugh
Staff Reporter

Published: March 25, 2014 5:14 pm ET
Updated: March 26, 2014 1:38 pm ET

Related to this story

Topics Packaging, Construction, Mergers & Acquisitions, Blow Molding

GAF Manufacturing LLC, which does business as Midwest Plastics Products, has been acquired by Minneapolis-based Spell Capital Private Equity in a leveraged transaction with management.

GAF primarily makes HDPE drain tiles, fittings and pipe accessories for the agricultural drainage and commercial tubing markets but it also produces blow molded containers and other products.

Terms of the transaction were not disclosed but Cole Taylor Business Capital, the asset-based lending division of Cole Taylor Bank, says in a news release that it is funding a $7 million senior debt facility to GAF.

GAF is based in Jefferson, Wis., and has a second facility in Plainfield, Iowa.

“We’ll keep both facilities open and our intention is to grow both of them,” Spell Capital managing director Steve Jones said in a telephone interview.

The company positioned itself as a quality and price leader in the drain tile industry by delivering a product that is heavier and more durable than competitors, Jones added.

“The bulk of their business is agricultural; mostly farmers who need to drain off chronically wet areas so they can improve the yields on their crops. The tile is used to improve the quality of the ground,” Jones said.

Spell Capital specializes in the acquisition of controlling interests in industrial manufacturing businesses that are historically profitable and considered well-managed. Spell collaborates with management to grow businesses internally and through add-on acquisitions.

“Over the years we’ve had a lot of experience with plastics-related businesses and what attracted us to this company is it has a very good president in place, Dawn Lucas, and we think there’s opportunity for both organic growth and growth through acquisitions,” Jones said.

GAF is the third portfolio company investment in Spell’s Fund IV. The drain tile aspect of the business, which started in 1972, will get a lot of attention going forward.

“Next we work with the president to grow the business organically and look for acquisition candidates,” Jones said. “We think there’s an opportunity to do some consolidation in the business.”


Comments

Spell Capital buys plastic drain tile maker

By Catherine Kavanaugh
Staff Reporter

Published: March 25, 2014 5:14 pm ET
Updated: March 26, 2014 1:38 pm ET

Post Your Comments


Back to story


More stories

Image

Wright Plastic Products buys Tennessee auto supplier Hope Industries

March 4, 2015 3:51 pm ET

Michigan custom injection molder Wright Plastic Products Co. LLC has acquired Tennessee-based automotive supplier Hope Industries Inc., the companies ...    More

Image

Winter blasts ADS sales forecast

March 4, 2015 3:40 pm ET

Net sales forecasted for Advanced Drainage Systems are likely to slip as bad weather grips much of the United States into early March, delaying...    More

Image

Snow damages roof at Pactiv plant

March 4, 2015 2:39 pm ET

No injuries were reported after a roof buckled under the weight of snow and ice at a Pactiv Corp. facility in New York.    More

Image

Shepherd named Thermoformer of the Year

March 4, 2015 11:32 am ET

Barry Shepherd, of Shepherd Thermoforming and Packaging Inc., is the newest Thermoformer of the Year.    More

Image

Newell Rubbermaid expanding production, employment in Kansas

March 3, 2015 3:31 pm ET

Newell Rubbermaid Inc. is expanding and extending plastics molding technologies at its Winfield, Kan., manufacturing plant and distribution center.    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