Madison Capital Partners has purchased hot-runner supplier Synventive Molding Solutions Inc., reuniting several former company units under common ownership.
But while the deal means all the former Dynisco Inc. companies have a common owner, Chicago-based Madison said the companies will operate as independent units.
``For many of our customers, this [purchase by Madison] will be a nonevent,'' said Mark Moss, Synventive senior vice president and head of the company's North American sales, marketing and engineering operations.
``There will be no name changes, no changes to important personnel. Madison brings to us some management talent at helping run similar-sized companies in the industry. That will be advantageous as we move forward and grow the business,'' he said in a telephone interview.
Terms of the Aug. 21 deal were not disclosed.
Back in 2000, Madison bought three Dynisco units that make pressure transducers, extrusion equipment and testing equipment. At the time, however, Philadelphia-based Berwind Group decided to keep the hot-runner business, then called Dynisco HotRunners. A year later the hot-runner unit changed its name to Synventive and moved from Gloucester to Peabody, Mass.
``At this point, we're looking to maintain good stability,'' Moss said.
Synventive has grown to more than 600 employees and claims to be the third-largest maker of hot-runner systems worldwide, Moss said.
Although the company does not release sales figures, several sources and a document given to Plastics News show annual sales projected at about $87 million for 2003.
Berwind had owned the hot-runner supplier since 1986. The Philadephia company has decided to shift its portfolio to other investments, even though Synventive still was a steady performer, Moss said.
Madison had considered purchasing the hot-runner supplier in 2000, when it bought the other Dynisco units, but Berwind was unwilling to sell it, said Larry Gies, president and chief executive officer of Madison Capital.
Since then, even in a down economy, nothing has changed Madison's opinion of Synventive, he said.
``From a global perspective, they were not hurt at all during the downturn,'' Gies said.
``Our goal is for them to have the funds available for technology and customer service so they can continue to stay competitive. We think the market is coming back both in Europe and the United States.''
Part of Synventive's success is coming from its line of hot-runner process-control products, a growth industry at the company, Moss said. Those include the company's Dynamic Feed technology, used for a variety of injection molding systems that merge hot runners and controllers.
Synventive's sale to Madison was predicted in a memo purportedly sent to Madison investors July 14 that outlined terms of the agreement. The memo was fabricated, Gies said, and an agreement was not actually completed until more than a month later. A copy of the memo had been obtained in July by Plastics News.
Madison also owns thermoforming equipment maker Brown Machine LLC, equipment remanufacturer Epco Machinery LLC and several plastics processors.