Rotonics Manufacturing Inc. one of North America's largest rotational molders has grown by acquiring Thermodynamics of Broken Arrow, Okla.
No purchase price was disclosed in the deal. Thermodynamics has annual sales of $6.5 million and employs 45 at a 30,000-square-foot site. The firm makes plastic pallets and other rotomolded products.
Denver-based Rotonics is a unit of investment firm Spell Capital LLC of Minneapolis. The deal is the first acquisition for Rotonics since the firm bought the rotomolding division of Plastics Group Inc. in 2007. Rotonics is buying Thermodynamics from investment firm Prairie Capital LP of Chicago.
Thermodynamics is a nice add-on to Rotonics, Rich Leary, Rotonics' president and CEO, said Nov. 9 by phone. Thermodynamics complements our existing pallet business and opens up other markets as well, he said.
Leary added that although pallets still make up more than half of Thermodynamics' sales, the firm recently has made progress in products for electrical markets.
Rotonics and Thermodynamics both sell into the pallet market, but Leary said the two firms didn't butt heads very often.
We were aware of them, but we weren't really competing on a head-to-head business that much, said Leary, who joined the firm in March after working with Spell unit Breen Color Concentrates Inc.
Officials with Thermodynamics and Prairie Capital could not be reached for comment.
Rotonics ranked as North America's eighth-largest rotomolder in a recent Plastics News survey, with related annual sales of $85 million. The firm employs almost 500 workers at nine locations. Its products include material-handling bins, refuse containers, liquid storge tanks and kayaks.
The Rotonics-Thermodynamics deal is the third plastics transaction of the year for Spell Capital. In February, the firm sold the flexible PVC compounding business of PVC Compounders LLC to Manner Plastics LP of McKinney, Texas. In March, Spell's Breen Color Concentrates Inc. unit bought the PVC colorant business of Teknor Apex Co. of Pawtucket, R.I.
Spell which announced the Rotonics-Thermodynamics deal Sept. 9 has owned Rotonics since 2006 and currently has six plastics businesses in its portfolio.
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