CIT Group/Venture Capital Inc. has bought controlling interest in Omega Polymer Technologies Inc., a diverse plastics processor based in Aurora, Ohio.
Omega Polymer is made up of three units involved in pultrusion, extrusion and injection molding. It logged sales of about $55 million last year, according to a June 8 news release. Colby Collier, managing director for CIT/ Venture, said his Livingston, N.J., firm bought Omega Polymer because of its growth opportunities.
Omega Pultrusions Inc. of Aurora, the largest subsidiary, does custom and proprietary pultrusions for construction, refrigeration, transportation, lawn and garden, and other industries. Carsonite International Corp., its next-largest unit, pultrudes and extrudes highway, utility, telecommunications and other products at Early Branch and Varnville, S.C. Viking Plastics is a custom and proprietary injection molder in Corry, Pa., that specializes in reinforced plastic fittings and connections.
Carsonite has developed highway sound-protection technology with good growth potential, Collier said in a telephone interview. It pultrudes panels that are filled with ground-up rubber tires and has installed the systems in several cities. Carsonite can grow internally and by acquiring small companies that focus on highway products but are too small to market them nationally, according to Collier.
John Kirby, general partner in Omega's former parent, Key Equity Capital of Cleveland, said Omega was profitable but his firm decided to sell its 90 percent stake because CIT/Venture offered a good price. Key Equity had been majority owner for more than five years and expanded the businesses from $15 million a year when it bought them.
Omega Polymer Chief Executive
Officer Thomas Deller said Omega Pultrusions and Carsonite have opportunities to work together, but there is no plan to integrate them because they focus on different markets. Viking has seven injection molding machines with clamping forces to 1,000 tons, including three presses it has added in the past year.
Other owners of Omega Polymer include Founders Fund of South Carolina LP, a management team, and institutional and individual investors. Collier said management owns more than 20 percent but he provided no other breakdown. He said CIT/Venture wants to triple Omega's size.
CIT/Venture has five separate investments in plastics firms, which have total sales of about $500 million, Collier estimated. CIT Group overall has numerous investments in plastics firms that together have multibillion-dollar sales annually.