Corrugated plastic sheet converter Numatech Industries Inc. has a new shareholder and more capital to pursue acquisitions.
VenGrowth Private Equity Partners Inc. and affiliates have invested C$10.5 million (US$8.9 million) in Puslinch-based Numatech, providing a subordinated loan and acquiring a significant minority stake in the firm. A Numatech management team, led by President Brent Vickery, acquired the majority stake in the company.
The firms announced the deal Oct. 19.
Graham McBride, VenGrowth managing general partner, said Numatech fits his firm's plan of investing in businesses with strong management and good growth prospects. The Toronto private equity company's only other plastics investment is MPI Packaging Inc., a Toronto-based PET bottle blow molder, McBride said in a telephone interview. VenGrowth manages more than $1.1 billion in total assets.
McBride said VenGrowth bought part of its Numatech stake from Matra Plast Industries Inc., formerly a significant shareholder in Numatech. Matra Plast officials could not be reached for comment.
Numatech converts thermoplastic corrugated sheet into products such as returnable materials-handling goods, dunnage, pallets and specialty packaging for automotive, appliance, electronics and agriculture. It also sells corrugated sheet to advertising and printing companies. It runs seven manufacturing plants in the United States and Canada.