In a deal that recalls Donald Graham's roots in the plastic packaging market, private equity firm Graham Partners Inc. has purchased Sheboygan, Wis.-based blow molder Scandia Plastics Inc.
Scandia has one plant, in Sheboygan, and estimated annual sales of $22 million. The company makes bottles, wide-mouth containers, medical containers and light industrial parts.
According to Plastics News' most recent survey of North American blow molders, the company has an estimated 35 machines and 90 employees.
Scandia, which is 30 years old, is family-owned. CEO Lars Graff said in a news release that the family felt that finding a partner with plastics packaging expertise was important.
Graham Partners, based in Newtown, Pa., near Philadelphia, was founded by Donald Graham, who started both a major blow molder and a blow molding machinery firm: Graham Packaging Co. Inc. and Graham Machinery Corp.
Donald Graham received a Lifetime Achievement Award this month from the Society of Plastics Engineers' Blow Molding Division.
Adam Piatkowski, managing principal at Graham Partners, said the firm anticipates “considerable growth” for Scandia, in part thanks to Graham's industry knowledge.
“It's a business that's been strong, has a great reputation for quality and customer service and offers a terrific platform to grow from,” Piatkowski said by phone.
Scandia has developed a strong position as a niche blow molder with technical design and engineering capabilities, he added.
Piatkowski would not discuss terms of the deal.
Graham Partners targets manufacturing or industrial service companies with annual sales between $30 million and $500 million and profit of between $5 million and $50 million.
The firm's plastics packaging-related holdings include stakes in blow molder Western Industries Inc. and Berry Plastics Group Inc., an injection molder, thermoformer and film extruder that went public Oct. 4 on the New York Stock Exchange.