Injection molder US Farathane Corp. has staked out more international territory by acquiring Shanghai-based Boston Plastics.
The firm finalized the purchase Jan. 22 for undisclosed terms, a spokesperson said. The Jan. 27 announcement of the deal came two weeks after Farathane revealed it bought Tepso Plastics Mex to give it two manufacturing plants in Mexico.
Boston Plastics does injection molding and assembly in Shanghai, Taicang and Changchun. About half its business is molding automotive parts such as interior components, with the rest split between industrial and other markets. It was established in Singapore in 2005.
Farathane's international profile is expanding a year after private equity Gores Group acquired the company. Gores's principals have experience in Asia and other markets and are helping guide Farathane's growth. A spokesperson said Farathane is now looking at Eastern Europe for a potential manufacturing location.
“We originally partnered with Gores to expand our global footprint and this latest acquisition enables us to directly participate in the large and growing China market,” said Farathane CEO Andy Greenlee in a news release.
“The Boston Plastics team understands our technology and has demonstrated success serving demanding international customers. They launched three facilities in China and have consistently delivered outstanding results.”
Farathane said the China deal puts it into the largest global auto market in the world, and will help the firm serve carmakers in both the United States and China.
“The acquisition will enable us to increase US Farathane's immediate reach into the China market, while simultaneously opening up new business with direct OEMs,” said Boston Plastics general manager Eddie Chia in a news release.
The latest deal gives Farathane a total of 16 manufacturing plants in China, Mexico and the United States. It is headquartered in Auburn Hills, Mich.
Stout Risius Ross Advisors LLC and Mummert & Co. served as financial advisers to Boston Plastics.