After selling his entire $2 billion empire to a European investment group less than a year ago, Sal Alfiero is taking back a piece of the pie.
The former chairman and chief executive officer of Mark IV Industries announced his investment group will reacquire Buffalo, N.Y.-based Protective Closures LLC in a $78 million deal. The firm injection molds protective caps and valves for industrial applications.
``Protective Closures was the first significant investment Mark IV made in 1984,'' Alfiero said in a May 30 telephone interview. ``We know something about it, and we have the opportunity to purchase it.''
Alfiero is the patriarch of Mark IV Industries, which he built into a Fortune 500 company before selling to BC Partners. The private equity firm has offices in Paris; London; Milan, Italy; and Hamburg, Germany. The deal closed in September.
BC Partners is selling off other parts of the business, Alfiero said, but his group has no plans of acquiring any others.
``I made sure we had the opportunity to purchase Protective Closures,'' he said.
Alfiero's investment group, named Protective Industries LLC, put up $36 million. The group includes former Mark IV officials John J. Byrne, Gerald S. Lippes and Clement Arrison and six anonymous investors. The group received additional financing through a $50 million credit facility from M&T Bank, Fleet National Bank and HSBC Bank USA.
No management changes are planned at Protective Closures, which manufactures vinyl caps, plugs and wraps through its 50-year-old Caplugs division. Mark IV operates three other divisions: Mokon Temperature Control Systems, which produces water and oil temperature control products for injection molding machines; medicine vial maker Clarke Container; and Luminator, which produces signs for the mass-transit industry.
Stephen P. Pirrone will remain president of Protective Closures. Alfiero, Byrne and Lippes will serve as chairman, president and vice president of Protective Industries, respectively.
The company seeks to grow through acquisitions and internally, Alfiero said.
The firm maintains its 250,000-square-foot production facility in Buffalo, with 68 injection molding machines. The company also custom dip molds at its 70,000-square-foot facility in Los Angeles.