The new owner of thermoformer Virginia Industrial Plastics sees higher sales for the Elkton, Va., firm.
“It was bought to grow it,” said Ed Fisher, principal of Ale Holdings Inc., a newly formed company that Fisher created to acquire Virginia Industrial.
Ale acquired Virginia Industrial, formerly a family owned business, effective Dec. 1. The purchased company has annual sales exceeding $12 million and a staff level as high as 32 during seasonal production peaks. Virginia Industrial runs two rotary thermoformers in its 86,000-square-foot plant.
“We will try to grow in current markets and in new markets,” Fisher added in a phone interview.
One of Virginia Industrial's growth markets is making proprietary aftermarket parts for golf carts. The firm offers a wide range of components such as cargo boxes, roofs and dashboards. Other key, custom markets are recreation, medical, government, signage and various industrial outlets. The firm also stocks plastic shapes such as sheet and rod and counts fabrication as an important part of its business.
Virginia Industrial's capabilities include computer numerically controlled machining, prototyping and in-house mold building. It used to operate injection molding machinery but no longer does that process in house. Its thermoformers can handle sheet as large as six feet by 12 feet.
Generational Equity of Dallas advised Virginia Industrial in the deal. It specializes in middle-market mergers and acquisitions, especially in cases where private or family-owned businesses want to exit their companies.
“This successful transaction was the result of a balancing act between banks, buyers and the seller,” noted Generational Equity affiliate Ahmad Behjati in a Dec. 15 news release.