From Washington to Pennsylvania to Alabama, the new McClarin Plastics LLC will be twice as big and provide fiber-reinforced plastic components as well as other products and services across the country.
The new entity was formed when McClarin Plastics Inc. of Hanover, Pa., merged with Blackford Capital LLC's Amtech Corp. of Yakima, Wash., to form a composites molding powerhouse.
“We share some common processes. There some things that we do well and there are certain things that Amtech does well that we have never done. There are a lot of synergies and that means a lot,” said Todd Kennedy, CEO of McClarin, in a phone interview.
He also said the combination will bring in more than $75 million in annual sales, which will provide some purchasing power, but more important will give it a greater edge with science and technology.
The new company retains the McClarin name and will be headquartered in Hanover. Management teams from both companies will remain in place with Kennedy and Doug Christie, current CEO of Amtech, serving as co-CEOs.
Blackford, a private equity investor from Grand Rapids, Mich., has owned Amtech since 2008 and will continue as an investor in the new entity.
“This merger will make McClarin Plastics LLC a national provider with facilities within one-to-two days shipping for 80-90 percent of the market. Our six major production processes will address roughly 45 percent of the $35 billion U.S. composites industry and our best-in-class engineering will be able to meet the needs of customers across diverse end markets,” Christie said in a news release.
The combined companies will have more than 500 employees, 650,000 square feet of manufacturing space and facilities in Pennsylvania, Washington, and Elmore, Ala.
Blackford has grown Amtech's sales from $9 million in 2008 to $38 million. It helped Amtech in two previous acquisitions and implemented operational changes that helped it achieve 28 percent average annual sales growth.
Kennedy said he was familiar with Amtech's track record and is hopeful that the combination can provide for more growth. The companies expect to add 150 jobs at the three sites in the next few years.
Amtech started in 1987 and makes composite-based products for military and commercial markets. Among its specialties are resin transfer molding and vacuum-assist RTM.
McClarin started in 1953 and is a contract manufacturer of large thermoformed plastic and fiberglass-reinforced plastic components. It supplies industrial equipment, construction, rail, transportation, agricultural and medical customers.
Blackford named 11 people to the McClarin board of directors. They include: Martin Stein and Greg Stone, Blackford Capital; Chuck Bennett, Dixie Chemical; Phillip Ashkettle, RESPolyflow LLC; Michael Clifford and Todd Kennedy, McClarin Plastics; Larry Miller, Chrystal Associates LLC; Steven Schomer, Valeo Inc.; Estella Vallejo, O'Brien Enterprises; Jim Zawacki, GR Spring & Stamping; and Shirish Pareek, Hydraulex Global.
MB Financial Bank and Patriot Capital provided financing for the deal.