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

Optical disc molder OEM getting into micromolding with acquisition of CDA

August 29, 2014 11:24 am ET

Optical disc replicator and molder Optical Experts Manufacturing Inc. of Charlotte, N.C., has expanded its core business and entered new high...    More

Image

Tighter resin prices leading to price hike for PE film

August 29, 2014 11:13 am ET

One of North America's largest film makers is pushing through a polyethylene price increase due, in part, to the tight resin market.    More

Image

Green trend boosts plastic building materials business in China

August 29, 2014 9:42 am ET

The greening of China's domestic building materials market is giving the plastics industry a boost.    More

Polish injection molder Teknorubber up for sale

August 29, 2014 9:14 am ET

Polish plastic parts maker Teknorubber has been put up for sale following its insolvency filing in March 2014. The company is to be auctioned through ...    More

Image

Sidel opens training center in Mexico

August 29, 2014 9:00 am ET

Swiss machinery company Sidel Group has opened a new training center in Guadalajara, Mexico, featuring a virtual factory environment, augmented realit...    More

Market Reports

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

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

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

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

More Events