Diversified rigid packaging components producer Rieke Packaging Systems now has a bigger footprint in Asia.
Rieke parent company TriMas Corp. acquired Lion Holdings Pvt. Ltd. of Greater Noida, India, a producer of plastic dispensing systems for non-pressurized consumer packaging. Lion Holdings manufactures in Greater Noida and Baddi, India, and Ho Chi Minh City, Vietnam.
“Going to India is something we've been working on for some time,” said TriMas spokeswoman Christine Parker in a phone interview. Rieke has done some export business to India but owning production there “is a quicker way to be there.”
TriMas paid $27 million for Lion Holdings, a $10 million company for the year ended June 30, in a deal that closed July 25. Parker said Lion Holdings has similar product lines to Rieke's dispensing system category. The two businesses have some globally oriented customers in common but Rieke also will gain new clients as a result of the deal.
Rieke is much larger than Lion Holdings — $313 million in sales last year — but is also far more diverse. In addition to specialty dispensing systems such as pumps, foamers and sprayers, Rieke's product lines include plastic and steel closures, caps, drum and pail enclosures, rings and levers.
“This acquisition clearly broadens our Asian market coverage and extends our geographic reach, while also providing significant customer and product synergies,” noted Lynn Brooks, president of TriMas' packaging segment in a news release. The newly bought capacity will support TriMas' Asian growth strategy and contribute to a global packaging supply chain, he added.
Rieke opened its second plant in China early this year. The Haing operation complements Rieke's Hangzhou, China, plant opened several years ago. The operations in China produce most of Rieke's product lines, according to Parker.
Rieke, headquartered in Auburn, Ind., has another plant in the state at Hamilton, and operations in Arkansas, California, Australia, France, Germany, Mexico and the United Kingdom.
Parker said it is too early to speculate about plans for the acquired plants in India and Vietnam but “we will try to grow our presence in Asia and we will keep the management team.”
Lion Holdings was part of India's Bahri group. Lion Holdings' Specialty Valves business unit claims to have introduced spraying and dispensing systems into India in 1995. Its Indian operations run L&T and Ferromatik injection molding presses with clamping forces ranging from 50 to 450 tons as well as tool rooms.
TriMas went on an ambitious expansion program a few years ago and added new U.S. operations to Rieke. It bought Innovative Molding Inc. in 2011, adding facilities in Rohnert Park, Calif., and Atkins, Ark., and expanding Rieke's market share in food and nutrition closures. In 2012 TriMas bought Arminak and Associates LLC of Azuka, Calif., boosting Rieke's stake in consumer dispensing products.
Business segments for Trimas of Bloomfield Hills, Mich., are packaging, energy, aerospace and defense, engineered components and equipment for towing, trailers and cargo management. The Nasdaq-listed firm employs about 6,000 at more than 60 facilities in 17 countries.
