CHICAGO (Updated Oct. 14, 10:45 a.m. ET) — After buying up six plastics assets in four years, Citadel Plastic Holdings Inc. might be on the selling block.
An Oct. 13 report from the Reuters news service said that Citadel's owner — private equity firm Wind Point Partners of
Radnor, Pa.-based Citadel most recently bought compounder QTR Inc. of
Since its 2007 launch, Citadel has been led by industry veteran Mike Fitzpatrick. Neither Fitzpatrick now Wind Point principal Paul Peterson could be reached for comment.
Wind Point's timing might be right in taking Citadel to the market now, according to Michael Benson, a managing director with investment firm Stout Risius Ross of
“Generally speaking, there are more buyers than sellers right now,” Benson said by phone. “And some private equity firms are taking advantage of this timing. There's also been a bit of a plateau in value for some types of businesses.”
Benson added that Wind Point's four-year involvement with Citadel “seems to be on the short end of things,” but he also said that the firm “may already have integrated the businesses and got the most out of [Citadel] that it could.”
Citadel's other holdings include compounders Matrixx Group of Evansville and Aclo Polymers Inc. of Cambridge, Ontario, and thermoset materials maker Bulk Molding Compounds Inc. of West Chicago, Ill. The firm also bought a compounding and injection molding plant in
In 2009, Citadel bought compounder Fiberfil Engineered Plastics Inc. of