Five months after acquiring Atlanta-based Filtrona Extrusion, officials at Saw Mill Capital LLC say the diversified profile extruder now has the financial support necessary to flourish in its many end markets, even if the North American economy's rally is delayed.
The Briarcliff Manor, N.Y.-based private equity firm bought the extrusion unit in March from Milton Keynes, England, global specialty plastics and fiber supplier Filtrona plc for $115 million.
Saw Mill focuses exclusively on manufacturing companies and provides necessary resources whether that be lean manufacturing, or sales and marketing resources, said Tim Nelson, a Saw Mill Capital principal, in a telephone interview.
Filtrona plc officials did not view the extrusion business as part of their core, and choose to pursue what they consider higher-margin, higher-growth-potential businesses.
Filtrona Extrusion operates 126 extruders, 51 co-extruders and six sheet lines at seven plants in the U.S. and Mexico, said Sam Tinaglia, co-head of commercial and industrial business at Chicago-based William Blair & Co. Filtrona plc's financial adviser. Filtrona Extrusion's manufacturing space totals more than 750,000 square feet and the company ships more than 70 million pounds of extruded plastics products each year.
The company makes parts for various markets including aerospace, point-of-purchase signs and displays, medical, traffic control, lighting and fencing.
In all respects, when I think across all the end markets, management is really positioned to grow in each of them, Nelson said. If the economy comes back, that will be helpful, for sure. But we didn't base our investment on the assumption that the economy comes back. Business was doing well when we bought it. It's pretty much a continuance of what we put in place and the continued growth trajectory of what [Filtrona Extrusion] put in place.
We're encouraging them and supporting them, not only financially and with additional human resources, but [by putting] plants and processes in place to grow the business.
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