Rotational molder Snyder Industries Inc. is poised for expansion with an infusion of capital under new ownership.
The Lincoln, Neb., firm will look at possible acquisitions that complement its proprietary lines of materials-handling tank and container products, said President Tom O'Connell in a telephone interview.
``The capital will allow us to grow internally and to look at acquisitions,'' O'Connell said. Snyder will look primarily at rotomolders, but it could buy into other processes if they fit its core business, he said. It will take six to nine months to identify and begin acting on opportunities.
Cortec Group, a New York private equity firm, acquired a majority stake in Snyder for undisclosed terms effective Dec. 23. A Snyder management group holds a minority stake. Linsalata Capital Partners of Cleveland previously owned Snyder and sold it for investment reasons.
Snyder, with sales of $51.4 million for fiscal 2004, was the sixth-largest North American rotomolder, according to Plastics News' 2005 rotational molders survey. Snyder operates two plants in Lincoln, including its largest facility. Its other three plants are in Arkansas, West Virginia and California. The Chowchilla, Calif., site was Snyder's latest acquisition, in 2001. Snyder also closed a plant in Roanoke, Ala., several years ago because it was not close to major markets and had undersized machinery.
Snyder's product line includes bulk storage tanks, intermediate bulk containers for transporting bulk liquids and dry materials, septic tanks and water cisterns for water and waste management. O'Connell said his company prefers proprietary rotomolding because in custom molding, it often is difficult to pass on cost increases. Snyder mainly rotomolds polyethylene, mostly linear and cross-linkable grades.
Snyder claims to own the largest single rotomolding machine, capable of making parts 28 feet by 12 feet. The custom-made McNeil Akron machine can turn up to 7,000 pounds of resin into seamless products such as liquid and powder storage tanks.
Cortec specializes in middle-market companies in manufacturing, services and distribution. Cortec Group Fund III LP has more than $330 million of committed capital to acquire companies.