Rosti AB, which has injection molding plants in China, India, the Netherlands, Poland and Scotland, is expanding in the United Kingdom by purchasing McKechnie Engineered Plastics Ltd., which trades as McKechnie Plastic Components.
Rosti is owned by Nordstjernan AB, a Stockholm-based investment firm. The purchase price is £30.7 million ($47.9 million).
Both companies previously had U.S. plants, but none are included in this deal.
McKechnie, which had been owned by Alcester, England-based turnaround specialist Melrose plc, operates 110 injection molding machines at plants in Stamford Bridge and Pickering, England, as well as a metal fasteners operation in Swansea, Wales.
Walsall, England-based McKechnie has annual sales of about £75 million ($117 million) and employs 650. It makes auto and packaging products, including flow widgets for Guinness and Heineken cans.
The firm will be integrated with Rosti Europe, a unit of Stockholm-based Rosti AB, as Rosti McKechnie Ltd. McKechnie supplies most of Rosti's markets, and Rosti CEO B"rje Vernet called the fit of the businesses “impressive.”
Rosti Europe Chief Operating Officer Barry Coughlan agreed, and said the deal will open up a number of global markets to what had been a U.K.-centric business.
“McKechnie's customers are delighted to be working with a global company and there is tremendous scope to capitalize on that aspect going forward. This is a major step forward [for McKechnie] and we are delighted to be working with what is a very strong, very technically minded team of people,” he said.
Coughlan said Rosti had been on the lookout for companies to buy for some time and had been in talks with McKechnie since the beginning of this year.
He called the acquisition an “expansion opportunity, not a rationalization exercise,” saying no closures or layoffs are planned.
“McKechnie has an outstanding reputation with a complementary portfolio of products, services, customers and markets. We are extremely positive about the synergy between our businesses. Combining our resources will provide a platform for both U.K. and international growth with many of our global OEM partners,” he added.
Coughlan said there were no plans to change McKechnie's “fantastic” management team, which comprises Brian Mann, managing director, and Mike Murphy, sales director.
Melrose Chairman Christopher Miller said McKechnie had “performed well as part of the Melrose group and we wish the management team every success.”
Both Rosti and McKechnie used to have operations in the U.S. Spell Capital Partners LLC bought McKechnie's plant in Minneapolis in 2001 and renamed it Midwest Plastic Components. That company is now part of Spectrum Plastics Group.
When Sweden's Rosti A/S sold its injection business to Nordstjernan in 2010, the deal did not include the company's three U.S. plants, which Rosti sold in May 2010 to McCalmont Industries LLC, a management buyout group that included Jim McCalmont.
That business was renamed Premier Technical Plastics.