Advent International Corp., a $10 billion global equity firm, has purchased hot-runner supplier Synventive Molding Solutions Inc. from Madison Capital Partners.
Terms of the deal, announced Aug. 2, were not disclosed.
Peabody, Mass.-based Synventive already has a global presence: It runs plants in North America; in Europe at Gravendeel, the Netherlands, and Bensheim, Germany; and in Suzhou, China. Synventive also has service and support operations in more than 20 countries.
Advent pegged the worldwide hot-runner market at around $1.1 billion. It is growing about 4-5 percent a year, the private equity firm said.
Doug Kingsley, Advent's managing director in charge of the industrial technology sector, said top management will remain at Synventive. That includes President and Chief Executive Officer Dale Barnhart; Bill Hume, president for North America; and Mark Moss, president of Asian operations.
According to Advent, automotive molding is Synventive's primary market. Synventive management will explore more expansion in Asia, to supply hot runners to China's huge manufacturing base. The company also will move into more end markets, including packaging, electronics, medical products, appliances and building products, Advent said.
Kingsley said Synventive employs about 420 around the world, but he declined to give sales.
Earlier this year, Advent made news in the plastics industry when it teamed with another U.S. investment firm, Carlyle Group, to buy German vinyl window extruder HT TrÃ¶plast AG.
Founded in 1984, Advent has raised $10 billion from more than 200 institutional and corporate investors, including pension funds, university endowments, foundations and financial institutions. More than 130 of Advent-owned companies have gone public.
Kingsley said Advent was one of the first U.S. private equity firms to make deals in Europe. Today Advent runs offices in 13 countries. The firm invests in a range of sectors, including industrial technology and electronics, chemicals, energy, financial services, retail, health care, communications and the media.
Advent is much larger than Chicago-based Madison Capital, said Larry Gies, Madison's president and CEO.
``The management team at Synventive did a terrific job building the business, and they were ready for a new owner to take them to the next level,'' Gies said.
In the plastics sector, Madison still owns thermoforming equipment maker Brown Machine LLC of Beaverton, Mich.; Fremont, Ohio-based plastics machinery remanufacturer Epco Machinery LLC; and extrusion companies Holm Industries Inc. and Industrie Ilpea SpA.
Madison bought Synventive in 2003 from Berwind Group of Philadelphia. Advent invests in market-leading businesses with significant growth potential and international expansion opportunities.