Snyder Industries Inc. has a new parent company with plans to consolidate the rotational molding industry. Snyder announced that it was purchased by Linsalata Capital Partners, a private-equity firm from Cleveland.
Snyder is a Lincoln, Neb.-based rotomolder of tanks and containers for industrial and agricultural markets, with an estimated $33 million in sales and four manufacturing facilities. The company placed ninth in Plastics News' 1999 ranking of North American rotational molders.
Snyder Chairman and Chief Executive Officer Howard Gross and President Hal Spurrier will continue as shareholders and active management, a company news release stated.
Gross said the partnership with Linsalata fits perfectly with the company's growth plans.
"Our partnership with Linsalata Capital Partners provides us the needed capital resources to continue penetration of key industrial and agricultural markets," Gross said in the news release. "We are now in a position to actively pursue acquisitions of rotational molding companies that complement our product lines."
With the Linsalata partnership, Snyder now can focus on growth not only through acquisitions, but expanded product lines and new plants, Gross said in a telephone interview.
"Our view has never been simply size irrespective of quality earnings," he said. "We don't have a specific growth [target], but it has to go hand in hand with what we're making and quality."
Gross admits a trend toward consolidation by his company and other major rotational molders such as Norwesco Inc. and Rotonics Manufacturing Inc. However, he said the industry still leaves room for smaller companies and those serving niche markets.
"If one wants to grow for the sake of growing, there are a lot of small companies making low-tech parts," Gross said. "Larger companies that have all the resources do have an advantage over smaller companies standing alone, but smaller companies will always command a reasonable portion of the market in the industry."
Gross and his partner Spurrier bought the more than 30-year-old Snyder from its original owners in 1991.
Founded in 1984, Linsalata currently manages $220 million in buyout funds. With the acquisition of Snyder, combined annual sales exceed $1.7 billion.