A pair of Cleveland-based private equity firms and plastics industry veteran Chris Scarazzo have combined to buy a pair of related plastics businesses in Latrobe, Pa.
Capital Works LLC and Little Mountain Industries Inc. are involved in the deal, along with Scarazzo, who has more than 20 years of materials and processing experience, most recently with Solvay Advanced Polymers LLC. The firms being acquired are blow molder Premium Molding Inc. and its sister firm, blow mold maker Accu-Mold Inc.
No purchase price was disclosed. Both Premium and Accu-Mold are housed in a 115,000-square-foot location in Latrobe. The combined businesses have been renamed Premium Plastic Solutions LLC.
This facility is one of the best blow molding facilities I've seen in the entire country, Scarazzo said in a Jan. 27 phone interview. We can start with concept and part design, and carry that through to prototypes and production molding.
Premium makes parts from high density polyethylene and other resins for numerous markets, including medical waste, automotive, safety equipment, lawn and garden, recreational equipment and large capacity potable water bottles.
The investors are buying the companies from an ownership group that included Premium President Ron Mehta, who has left the firm. Mehta and partners bought the business in 2002 from Francis Bradley and Michael Nicely, who had launched Premium in 1987 in Derry, Pa. The firm moved to Latrobe in 2003.
Previous ownership reported sales of $16 million for Premium in 2009, according to the most recent Plastics News blow molders ranking. The business employed 90 and operated 20 blow molding machines, according to that data. Scarazzo declined to comment on current totals.
Polymer Transaction Advisors Inc. of Newbury, Ohio, initiated the sale and advised the buyers on the transaction.
Scarazzo, who will serve as president and CEO of the firm, said Premium will look for areas of growth.
In terms of the overall market, plastics is turning up quite nicely, Scarazzo said. We hope to enjoy some of those same results.