Capstone Capital Partners has taken a majority interest in composites producer Hadlock Plastics Corp. for undisclosed terms.
The investment in Geneva, Ohio-based Hadlock is Capstone's first in the plastics industry, said Capstone principal Terry Morgan. The new name of the acquired company is Hadlock Plastics LLC. Glenn Hadlock, former principal owner, retains a minority position in the business.
``Hadlock is a well-regarded niche manufacturer that is nicely positioned to capitalize on the growing trend toward the replacement of metal components and wood products with composite plastic,'' Morgan said in a news release. ``With the additional management and financial resources that Capstone will bring to bear, we believe that there is an opportunity to accelerate growth and improve operational efficiencies.''
Morgan said in a telephone interview that Capstone will spur Hadlock's expansion. The company will buy more presses, including large tonnage ones, and other equipment to support the expansion. He declined to provide specific details for the program.
Hadlock serves industries as diverse as medical, transportation, business equipment and fire safety. Its 130 employees work in a 122,000-square-foot plant. Hadlock's capabilities include a variety of composite molding technologies, precision machining, finishing and assembly.
Glenn Hadlock said in a news release that Hadlock's employees look forward to working with Capstone to expand in existing markets and new markets in the United States and the Far East.
Capstone is a Cleveland-based private equity firm that makes control equity investments in industrial and distribution businesses with annual sales of $15 million to $75 million.