Private equity firms Capstone Capital Partners of Cleveland and Highlander Partners LP of Dallas are buying thermoset compounder and molder Premix Inc. for an undisclosed price.
Capstone and Highlander plan to merge North Kingsville, Ohio-based Premix with Hadlock Plastics LLC, another business they own in nearby Geneva, Ohio, officials said in a Jan. 4 news release. Hadlock custom molds high-quality engineered composites.
Premix is a significant supplier of molding compounds to Hadlock, and the two companies have worked together for more than 30 years, Hadlock President Terry Morgan Jan. 6 by phone.
The benefit [of the deal] is really for both companies, said Morgan, who will remain with the combined company as CEO. We'll be a truly integrated supplier of composite materials a completely integrated systems provider.
The new combined firm which includes Premix's Quantum Composites Inc. unit in Bay City, Mich. will employ 430 and include more than 500,000 square feet of manufacturing space. The company will have sales approaching $100 million in 2011.
The drive to replace traditional manufacturing materials such as metal and wood with superior-performing, corrosion-resistant composites is creating new opportunities in a broad range of industries, such as aerospace and alternative energy, Morgan said.
We are eager to build upon the strengths of these long-standing and well-regarded thermoset companies as we expand into more markets and in more areas of the world, said Premix Chief Operating Officer Tom Meola in the release. Meola will remain in the COO role at the new company.
Capstone and Highlander are buying Premix from private equity firm Mason Wells Inc. of Milwaukee, which has owned a majority stake in it since 1999. A deal to sell Premix to competitor Core Molding Technologies Inc. fell through in early 2007.
Premix was founded in nearby Conneaut, Ohio, by childhood friends Ford Davey and George Kaull in 1959. The firm's first product was a circuit breaker for Westinghouse Corp. Today, half of Premix's sales come from electrical and heating, ventilation and air conditioning applications.
Hadlock also is in the midst of an expansion that will add 10,000 square feet of manufacturing space and create 20 new jobs at its Geneva location. The expansion will house new equipment and processing capacity and will be completed by the end of March, Morgan said.
Looking ahead, Morgan added that Hadlock is open to growing organically and by acquisition.