Private equity firm MPE Partners of Cleveland and Boston has announced the recapitalization of Pomona, Calif.'s California Medical Innovations, and its subsequent acquisition by MPE portfolio company Polytek Development Corp.
Terms of the deal were not disclosed.
CMI custom formulates and compounds natural rubber latex, plastisols and thermoplastic elastomers. Polytek, based in Eaton, Pa., makes liquid rubber molds and casting plastics, resins and foams that are used in industrial and consumer applications including concrete casting, special effects and sculpture. MPE took a stake in that company through a recapitalization in August 2015.
MPE said the add-on of CMI to the Polytek platform helps build a nationally integrated specialty chemicals provider.
MPE and Polytek partnered in the transaction with the Nathie Family, including founder Yousof Nathie and President Danny Nathie, who will both serve on the combined company's board of directors, according to the firm. Current Polytek CEO Jonathan Kane will serve as the CEO of the combined company.
MPE focuses on lower middle market companies with earnings before interest, taxes, depreciation and amortization (EBITDA) between $5 million and $20 million. It primarily targets high-value manufacturing and proprietary business services.