Two private equity firms are backing a management buyout of auto supplier Continental Structural Plastics Inc.
American Capital Strategies Ltd. of Bethesda, Md., announced March 3 that it invested $14 million toward the acquisition of the compression molder, with additional funding from Richard L. Scott Investments LLC of Stamford, Conn., and managers of the Bingham Farms, Mich.-based firm.
``CSP's strong market position as a leading North American molder of glass-mat-reinforced thermoplastics, its long-term revenue visibility ... and its sole-sourcing abilities make it an attractive investment opportunity,'' said American Capital Principal Ken Jones in a news release. ``In recent years, CSP has experienced strong growth, in part due to the automotive industry's conversion of steel parts to reinforced plastics.''
Max Capital LLC had been the primary backer of Continental Structural Plastics since 1998.
The purchase marks a continuing series of investments by American Capital into the plastics industry.
In 2004, it provided at least partial funding toward a management buyout of mold maker Weber Manufacturing Ltd. and an acquisition of extrusion equipment maker Dynisco LLC, and helped back Graham Partners Inc.'s purchase of Supreme Corq Inc.
It also has invested more than $30 million into Dearborn, Mich.-based Plastech Engineered Products Inc. since 2001.
Continental Structural Plastics falls within the group's key target range of middle-market companies, with estimated sales of $200 million.
The firm molds bumper beam reinforcements, rocker covers and other automotive and industrial products. It operates factories in Petoskey and Springhill, La., and has an office in Bingham Farms, Mich.