Equipment maker secures $1M loan
GLOUCESTER, MASS. — Gloucester Engineering Co. got a $1 million boost from the Massachusetts Growth Capital Corp. on June 8 during festivities celebrating its 50th anniversary.
MGCC, which provides capital to Massachusetts small businesses, loaned the company $1 million to assist in securing letters of credit to purchase materials. MGCC is based in Charlestown, Mass.
“The company is making dramatic strides to build a profitable backlog for this fiscal year,” GEC President Charles Grigsby said in a statement. “The company has increased hiring to 120 and continues to expand its marketing efforts. Over 65 percent of the company's products are exported. Therefore GEC is demonstrating that a Massachusetts company can effectively compete in the international manufacturing market.”
GEC provides equipment for the plastics extrusion and converting markets. It creates lines for blown and cast film extrusion, foam and sheet extrusion, bag making and extrusion coating equipment. GEC also does retrofits and provides parts. It is based in Gloucester and also has a joint venture in Damman, India.
“The past year has been one of sustainable growth for Gloucester Engineering,” CEO Mark Steele said in a news release.
The company emerged from Chapter 11 bankruptcy protection in 2010 with the help of private equity firm Blue Wolf Capital Partners LLC of New York. Blue Wolf is a majority stakeholder.
Equity firm building arsenal in plastics
NEW YORK — Arsenal Capital Partners apparently has found something it likes in the plastics market.
The New York-based private equity firm recently made its fourth plastics-related acquisition of the year when it bought Clifton Adhesive Inc., a supplier of thermoplastic and elastomeric adhesives and coatings for use in the aerospace, military, recreational and commercial marine markets.
No purchase price was disclosed. Wayne, N.J.-based Clifton was founded in 1946. Materials used by the firm include thermoplastic polyurethane, polychloroprene and styrene butadiene.
Arsenal acquired Clifton through its Royal Adhesives & Sealants unit in South Bend, Ind. Arsenal bought Royal in 2010, and later that year used Royal to purchase Para-Chem, a maker of specialty polymers, coatings and adhesives in Simpsonville, S.C. Royal then purchased another adhesives maker in 2011 and one more earlier this year for a total of four deals since being acquired by Arsenal.
Arsenal partner John Televantos said in a May 23 news release that his firm “is building the Royal adhesives business ... by selectively identifying niche acquisitions ... where we can apply our deep industry knowledge to achieve enhanced growth.”
“We are well on our way to building a strong company that will itself become a leading competitor on a global scale,” he added.
An Arsenal spokesman declined to provide a separate sales total for Clifton, but he confirmed that Arsenal has been targeting companies with annual sales of between $5 million and $35 million.
The multiple acquisitions have lifted Royal's annual sales from $35 million in 2003 to more than $250 million today. Counting the Clifton deal, Royal now employs 365 at seven U.S. plants.
Arsenal's previous plastics deals in 2012 were its purchases of pigment dispersion makers Plasticolors Inc. and the Colortrend business of Evonik Industries AG, and of plastic barrier treatment maker Fluoro-Seal Holdings LLC. Arsenal has combined Plasticolors and Colortrend to create a new firm called Chromaflo Technologies LLC.
MVC invests $1.5M in Biovation Holdings
PURCHASE, N.Y. — MVC Capital Inc., a publicly held business development company, is buying a large minority stake in biopolymer products maker Biovation Holdings Inc.
MVC's initial investment in Biovation — a producer of biopolymer-based laminate materials and composites based in Mankato, Minn. — will be $1.5 million, officials said in a June 8 news release. If sales, manufacturing and capital expenditure goals are met, MVC said it will invest another $1.55 million for a total investment of $3.05 million.
Biovation uses biopolymers made primarily from corn and soybeans to make materials that can be extruded into flat sheet or rolls. Those items then can be printed on or texturized. Biovation's products are sold under the Biosurf trade name and can be used in decorative lighting, military applications, print media and similar areas.
“We believe that Biovation is well-positioned to take advantage of numerous opportunities that exist in the highly fragmented decorative laminates industry,” Peter Seidenberg, chief financial officer of Purchase-based MVC, said in the release.
Standridge to make DaniMer materials
BAINBRIDGE, GA. — Bioplastics maker DaniMer Scientific LLC has struck a deal that allows Standridge Color Corp. to produce DaniMer's materials at a plant in the Czech Republic.
Social Circle, Ga.-based Standridge began producing compounds based on a DaniMer bioplastic at its Czech plant earlier this year, DaniMer President S. Blake Lindsey said in a June 6 phone interview.
Lindsey declined to confirm which bioplastic Standridge is using, but he said it is not polyhydroxyalkanoate made by DaniMer's sister firm, Meredian Inc.
Standridge and Bainbridge-based DaniMer had worked together for several years on bioplastic development projects. Standridge operates several plants in the U.S., in addition to plants in China and the Czech Republic, and ranks as one of North America's 30 largest compounders and concentrate makers.
Meredian is on track to open a 30 million-pound-per-year PHA plant in Bainbridge by the end of the year. The firm currently employs 30 and will add 20 more positions by the end of the year, Lindsey said. Meredian has long-range plans to open a 200 million-pound-capacity PHA plant at the same site.
Earlier this year, DaniMer reached an agreement with Quincy, Mass.-based Myriant Corp. to develop bio-based polymers from Myriant's biosuccinic acid. In 2011, DaniMer commercialized hot-melt adhesives based on its PHA materials.
DaniMer announced June 7 that it is commercializing a new bio-based label adhesive using technology from Myriant and DuPont Tate & Lyle Bio Products. The adhesive will simplify challenges caused by labels during PET container recycling, according to company officials.
Lindsey and business partner Daniel Carraway co-own both DaniMer and Meredian along with several other investors. The group in 2007 purchased technology from Procter & Gamble Co. that uses plant-based fatty acids — instead of sugars — to make PHA through fermentation.
Meredian has identified flexible films, coatings, fiber applications, injection molded parts and thermoformed packaging as potential areas for PHA use.
Bulk Handling buys National Recovery
EUGENE, ORE. — Bulk Handling Systems of Eugene, which makes optical sorting equipment for separating recyclables from municipal solid waste, has purchased National Recovery Technologies Inc., a major player in PET bottle and flake sorting equipment.
National Recovery Technologies of Nashville, Tenn., claims to have the world's largest installed capacity in PET reclamation plants. The company makes equipment that removes contamination from a stream of scrap PET containers and separates polymers based on fire-retardant or non-fire-retardant properties and color.
National Recovery Technologies also makes equipment that separates vinyl containers from PET bottles.
Terms of the deal were not disclosed.
Founded in 1981, National Recovery Technology holds 29 U.S. patents and five patents in other countries.
“NRT was founded by some of the brightest scientific minds in the industry,” said Bulk Handling Systems CEO Steve Miller.
Following the acquisition, BHS announced a new president for National Recovery Technologies: Matthias Erdmannsdoerfer. He has more than 15 years of executive leadership experience in the materials-handling and capital equipment industries. Most recently, he was president and CEO of conveying equipment supplier Beumer Corp. and president of Eisenmann Corp., a maker of conveying systems, industrial paint lines and robots.
Edward Sommer, an expert in the optical sorting field and a major patent holder, has accepted the position of chief technology officer.
Bulk Handling Systems builds large sorting systems for materials-recovery facilities handling municipal solid waste.
Mich.'s B&P Process honored as exporter
SAGINAW, MICH. — The U.S. Small Business Administration recognized B&P Process Equipment and Systems LLC as the Michigan and Midwest Regional Exporter of the Year.
B&P makes twin-screw extruders, kneaders and other equipment for mixing and separation in Saginaw.
President and CEO Laurence Slovin received the award at the Michigan Celebrates Small Business awards ceremony May 3 in Lansing, Mich.
Slovin said he credits B&P employees.
“What's most important for us is the technical people that we can hire, as well as the workers that assemble our machines,” he said. “I would put our engineers and our assembly people up against anybody. I think we do a great job.”
B&P Process Equipment serves a range of industries including plastics, fine and bulk chemicals, pharmaceuticals, coatings and adhesives.