Olympus Partners has taken a majority stake in rotational molder Snyder Industries Inc. and promises to help with its diversification.
Olympus, a private equity firm based in Stamford, Conn., paid an undisclosed amount for Snyder's shares in a deal announced July 17. Snyder's management team holds the remainder of the company.
One of Olympus' first tasks will be to boost Snyder through acquisition. Olympus has signed a letter of intent to buy a small, undisclosed rotomolder in a deal it expects to finalize in six to eight weeks, according to Rob Morris, Olympus managing partner.
Finding acquisitions will be one of Olympus' strengths in the relationship, Morris said in a telephone interview.
``We can be their mergers and acquisition arm,'' Morris said.
Other strengths Olympus brings to the table are financial resources and the ability to develop strategy.
Olympus will help Snyder diversify, said Mike Spurrier, Snyder vice president of sales and marketing.
``We will look at other plastic materials and processes and fabrication while we continue to expand in rotomolding,'' Spurrier said in a telephone interview.
Snyder President Tom O'Connell said in a news release, ``Our partnership with Olympus is a significant step in Snyder Industries' evolution from a single-process manufacturer with limited market growth potential to a multiprocess and material supplier for a growing number of end markets.''
Snyder already diversified earlier this year by acquiring the Asset Tank division of Clawson Container Co. The deal expanded Snyder's rotomolding capacity and gave it an entry into production of steel intermediate bulk containers to complement Snyder's rotomolded IBC tank lineup.
Lincoln, Neb.-based Snyder runs six rotomolding plants and reported 2007 rotomolding sales of about $87 million. The firm was North America's fifth-largest rotomolder in Plastics News' most recent ranking. It claims to have the world's largest rotomolding equipment, capable of making seamless parts as large as 30 feet by 12 feet.
Snyder stressed that it plans to strengthen its share in core markets and aggressively pursue new opportunities that match its manufacturing strengths.
Olympus buying into Snyder ``sounds like a good investment for someone who wants to get into large tanks,'' said Peter Mooney, president of Plastic Custom Research Services of Advance, N.C.
``Snyder has only a few competitors in big tanks,'' Mooney said. ``It's a good company growing in a secure market.''
New York private equity firm Cortec Group formerly owned Snyder, but decided to cash in its investment ``because that's the nature of the business, to sell after holding an investment for several years,'' Spurrier said.
Olympus has no other current plastics investment. It formerly owned Symmetry Orthopedic, an implant maker, but sold it in 2007 after holding it for seven years, Morris said. Olympus focuses on middle-market management buyouts and later-stage venture capital deals. It manages more than $3 billion in assets.