Mold-Rite Plastics LLC has acquired dispensing closures manufacturer Weatherchem Corp.
The purchase is Mold-Rite's second acquisition in as many weeks — the company announced its purchase of Stull Technologies Inc. of Somerset, N.J., also a maker of caps and closures, Nov. 19.
Weatherchem, based in Twinsburg, Ohio, makes dispensing closures for the food and beverage, cosmetics, personal-care, pet-care, health-care and chemicals markets. It had sales of $55 million in 2011, according to the most recent Plastics News survey of North American injection molders.
Mold-Rite will retain the Weatherchem name and brand.
“It's a great partnership for all of us,” said Aimee Weber, marketing and communications manager at Weatherchem.
Weatherchem, Stull and Mold-Rite have complementary product portfolios and similar company cultures; “pulling all three together is going to be really seamless,” she said.
The acquisition gives Weatherchem an opportunity to continue to grow the business and expand its product portfolio, along with giving it access to new technologies, like in-house molding, and new locations, she said.
The family-owned company had grown steadily over the last few years and was looking for a way to expand the business. Mold-Rite just seemed like a natural fit, she said.
She added that the deal was a logical next step professionally.
Albert J. Weatherhead III founded Weatherchem in 1971. He passed away last year.
Any changes at the company will be gradual. There are currently no plans for staff changes and management is planning on staying on board, Weber said.
Both the Stull and Weatherchem purchases are part of Mold-Rite's larger expansion plan, which includes both organic growth and acquisitions and “builds upon the company's standards of providing customers with reliability,” Mold-Rite said in a news release.
Mold-Rite was not available for comment at press time.
P&M Corporate Finance LLC of Southfield, Mich., served as financial adviser to both Weatherchem and Stull.
Mold-Rite, based in Plattsburgh, N.Y., manufactures rigid plastic packaging, including caps and closures, jars and specialty items, for a variety of markets.
The company had sales of $73 million in 2011, up from $67 million the year prior, according to the Plastics News survey. It has been owned by private equity firm Irving Place Capital, with offices in New York, since 2010.