Core Molding Technologies Inc. is expanding its thermoplastics capabilities with the acquisition of substantially all the assets of CPI Binani Inc., of Winona, Minn.
CPI Binani makes direct long-fiber thermoplastics products for the marine, automotive, packaging and other industries. It has a staff of about 100 employees and an 83,000-square-foot facility.
Core Molding said in a press release that the deal was a $15 million all-cash deal and will be financed through a new senior secured five-year loan. CPI was previously a wholly-owned subsidiary of Binani Industries Ltd. based in Mumbai, India. It will now be known as the CPI Division of Core Molding.
“This is very complementary to what we do. We've known their folks for several years and we've been impressed with their technological capabilities. When the opportunity came, it just fit our growth strategy,” said Kevin L .Barnett, President and CEO of Core Molding, in a phone interview.
Barnett went on to say that the acquisition provides new technology, industry-leading customers, experienced leadership, a motivated workforce, expanded geographical reach and a 5,000-ton press.
The press is larger than Core Molding has, but not by too much, as it does already use a 4,500 ton press.
“A significant amount of our customers are in medium and heavy trucks, but their business is in other markets, so it helps to diversify us,” he said.
Barnett also noted that the use of direct long-fiber thermoplastics (D-LFT) is more widespread in Europe, but that they see opportunities to expand CPI's capabilities in North America.
CPI Binani had annual sales of about $20 million in 2014. Core Molding expects the transaction to be accretive to earnings in 2015, adding 1 or 2 cents of earnings per share. It also does not see any significant restructuring and severance costs in 2015.
Core Molding is a manufacturer of sheet molding compound and a molder of fiberglass reinforced plastics. It specializes in large-format moldings, offering compression molding of SMC, glass mat thermoplastics and bulk molding compounds, spray-up, lay-up, resin transfer and vacuum resin transfer molding. It also does liquid molding of dicyclopentadiene.
The company, which is publically traded, serves the medium and heavy–duty truck, marine, automotive, agricultural, construction and other markets.
Core Molding maintains plants in Columbus and Batavia, Ohio; Gaffney, S.C., and Matamoros, Mexico.