Viking Plastics didn't take long to deliver on a promise of continued growth with the acquisition of Kentucky Manufacturing & Technology LLC.
Louisville, Ky.-based KMT makes what is described as high-precision, custom injected molded products for the specialty packaging, specialty appliance and filtration markets. The company also serves the lawn and garden, medical and industrial end markets.
“We've been looking for two geographical expansion opportunities. One is in the Southeast and one is in the Southwest. I've known the KMT business for a number of years and they happened to come on the market,” said Kelly Goodsel, CEO of Corry, Pa.-based Viking Plastics. “It was a good fit from a geographical expansion standpoint as well as a customer, market diversification play.”
KMT brings about 25 employees and less than 10 machines in the deal, Goodsel said. Viking Plastics employs about 125.
It was just late last year when Viking Plastics was sold to Spell Capital Partners LLC. At the time, management indicated it retained a significant ownership state in the business.
Viking Plastics said Spell would provide the necessary capital to allow for future growth, and that's exactly what's happening.
KMT was owned by Gerald Cox, who is joining the combined business and is retaining a stake in the business.
Viking Plastics, which also has ownership stakes in single facilities in both China and Brazil, is pursuing a dual track when it comes to growth.
“That growth from a strategic plan standpoint has two components. Organic growth, just growing the business we have with current and new customers, and an M&A acquisitive growth component with going out and finding the right targets,” Goodsel said.
Viking Plastics continues to look for an acquisition candidate in the Southwest, he said.
“While smaller parts and more technical parts tend to have bigger geographical competitiveness, at some point you still end up wanting to deal with local people. You want to be able to visit the facility. You want to minimize freight costs. All of those things drive needing being closer to our customer. That's really the driver behind the geographical expansion side of it,” Goodsel said.
Stout Risius Ross LLC advised KMT in the sale. “I believe the business is well positioned to continue its success with Viking Plastics,” Cox said in a statement.
Viking serves the automobile, heating and air conditioning and industrial markets. The company has annual sales of about $22 million, according to Plastics News estimates.
