Caplugs, a major producer of caps, plugs, tubing, netting and other protective goods for industry, has a new owner.
Berwind Consolidated Holdings Inc. of Philadelphia recently bought Protective Industries Inc., the parent company of Caplugs, for undisclosed terms. Private equity Windjammer Capital Investors sold Protective Industries after Caplugs' sales and earnings before interest, taxes and depreciation more than doubled since Windjammer bought the business in May 2011.
Berwind is a private company with diverse businesses, but it lists no plastics company in its portfolio. Its subsidiaries are engaged in specialty chemicals, adhesives, industrial alarms and lighting, coatings, natural resources and other markets.
Caplugs injection molds, extrudes and vinyl-dips more than 9,000 protective parts. The Buffalo, N.Y., company does manufacturing in Buffalo, and in Erie, Pa.; Houston; Rancho Dominguez, Calif., and at two facilities in China. A separate division, Mokon, makes thermal control equipment for plastics and other industries. Established in 1948, Caplugs supplies items that protect high-value products during transportation and storage. Most of the protective items are consumed during use, “creating a highly recurring revenue base,” Windjammer noted in a news release.
Windjammer said Caplugs' growth was due to a combination of organic expansion and mergers and acquisitions. The private equity group led a reorganization of sales and marketing functions, implementation of a new product development program and the launch of a purpose-built manufacturing plant in China.
“Caplugs' CEO joined the company shortly before our investment, and in partnership with him the culture of the business was transformed during our ownership,” noted Windjammer managing principal Costa Littas in a news release. Greg Tuchoiski is Caplugs' CEO.
“Many of the critical functional leadership positions were upgraded and the management team was able to leverage its existing world class manufacturing position as it created a successful sales and marketing driven organization,” Littas said.
Berwind was established in 1886 in coal mining and is now in its fifth generation of family ownership. In the 1960s it decided to lease its coal assets rather than operate them itself, and the funds freed up by the new business model were used to acquire other businesses.
Windjammer officers are in Newport Beach, Calif., and in Waltham, Mass. Houlihan Lokey acted as Caplugs' financial advisor and Choate Hall & Stewart LLP provided legal counsel.