Skip to main content
Sister Publication Links
  • Sustainable Plastics
  • Rubber News
Subscribe
  • Sign Up Free
  • Login
  • Subscribe
  • News
    • Processor News
    • Suppliers
    • More News
    • Digital Edition
    • End Markets
    • Special Reports
    • Newsletters
    • Resin pricing news
    • Videos
    • Injection Molding
    • Blow Molding
    • Film & Sheet
    • Pipe/Profile/Tubing
    • Rotomolding
    • Thermoforming
    • Recycling
    • Machinery
    • Materials
    • Molds/Tooling
    • Product news
    • Design
    • K Show
    • Mergers & Acquisitions
    • Sustainability
    • Public Policy
    • Material Insights Videos
    • Numbers that Matter
    • Automotive
    • Packaging
    • Medical
    • Consumer Products
    • Construction
    • Processor of the Year
    • Best Places to Work
    • Women Breaking the Mold
    • Rising Stars
    • Diversity
    • Most Interesting Social Media Accounts in Plastics
  • Opinion
    • The Plastics Blog
    • Kickstart
    • One Good Resin
    • Pellets and Politics
    • All Things Data
    • Viewpoint
    • From Pillar to Post
    • Perspective
    • Mailbag
    • Fake Plastic Trees
  • Shop Floor
    • Blending
    • Compounding
    • Drying
    • Injection Molding
    • Purging
    • Robotics
    • Size Reduction
    • Structural Foam
    • Tooling
    • Training
  • Events
    • K Show Livestream
    • Plastics News Events
    • Industry Events
    • Injection Molding & Design Expo
    • Livestreams/Webinars
    • Editorial Livestreams
    • Ask the Expert
    • Plastics News Events Library
    • Processor of the Year submissions
    • Plastics News Executive Forum
    • Injection Molding & Design Expo
    • Plastics News Caps & Closures
    • Women Breaking the Mold Networking Forum
    • Plastics in Automotive
    • PN Live: Mergers and Acquisitions
    • Polymer Points Live
    • Numbers that Matter Live
    • Plastics in Politics Live
    • Sustainable Plastics Live
    • Plastics Caps & Closures Library
    • Plastics in Healthcare Library
    • Women Breaking the Mold Networking Forum Library
  • Rankings & Data
    • Injection Molders
    • Blow Molders
    • Film Sheet
    • Thermoformers
    • Pipe Profile Tubing
    • Rotomolders
    • Mold/Toolmakers
    • LSR Processors
    • Recyclers
    • Compounders - List
    • Association - List
    • Plastic Lumber - List
    • All
  • Directory
  • Resin Prices
    • Commodity TPs
    • High Temp TPs
    • ETPs
    • Thermosets
    • Recycled Plastics
    • Historic Commodity Thermoplastics
    • Historic High Temp Thermoplastics
    • Historic Engineering Thermoplastics
    • Historic Thermosets
    • Historic Recycled Plastics
  • Custom
    • Sponsored Content
    • LS Mtron Sponsored Content
    • Conair Sponsored Content
    • KraussMaffei Sponsored Content
    • ENGEL Sponsored Content
    • White Papers
    • Classifieds
    • Place an Ad
    • Sign up for Early Classified
MENU
Breadcrumb
  1. Home
  2. News
July 11, 2017 02:00 AM

Industry vets find value in acquisitions

Frank Esposito
Senior Staff Reporter
  • Tweet
  • Share
  • Share
  • Email
  • More
    Reprints Print
    File photo
    Radke

    Chicago — Being part of an acquisition isn't always easy, but it's worth the effort.

    That was the message from plastics market veterans Jay Radtke, Al Ridilla and Mark Faber at Plastics News Financial Summit 2017, June 8 in Chicago.

    Private equity firm Mason Wells of Milwaukee combined blown film makers Charter Films Inc. and NEX Performance Films Inc. in 2012 to create Charter NEX Films Inc. That firm then acquired cast film maker Bloomer Holdings Inc. of Bloomer, Wis., and soon grew to have annual sales of $400 million.

    Mason Wells sold Charter NEX in 2015 to private equity firm Pamplona Capital Management. Pamplona then turned around and sold the business in April to private equity firm Leonard Green & Partners LP of Los Angeles for an eye-popping $1.5 billion.

    The first step, Radtke said, was getting Charter together with NEX. "NEX had a diverse customer base, but older equipment," he said. "They operated based on gut feel, with limited metrics and sales focused on filling lines."

    NEX also needed new financial reporting and information technology, according to Radtke. It took a big step in acquiring Charter, which he described as NEX's "No. 1 competitor and acquisition target," since the two firms had similar business, culture and products.

    The combination soon allowed for significant operating improvements. The combined Charter NEX saw its scrap rate fall from 8.9 percent to 2.2 percent from 2011-14. Its quality returns fell from 0.7 percent to 0.4 percent in the same comparison, while its resin savings increased from $800,000 to $6.1 million.

    Al Ridilla has seen similar changes at Parkway Products LLC, the Florence, Ky.-based injection molder where he serves as CEO. In 2006, Parkway management and Oxford Financial Group bought out the Willig family, which had founded the firm.

    Parkway then in 2009 bought the automotive injection molding business of Nypro Inc. It followed in 2013 by selling off its own aerospace and defense unit. Private equity firm Capital Partners of Norwalk, Conn., then bought a majority stake in Parkway in 2015.

    "We doubled our sales and then sold in two parts," Ridilla said. "That wouldn't have happened under our prior ownership."

    He added that it's important when making deals to focus on assimilation after the transaction. "Everyone has to feel from day one they're part of Parkway," Ridilla said.

    Ridilla also recommended meeting with numerous partners before agreeing to a deal. "Make sure you have as many dates as you can before you get married," he said.

    CM Packaging Group — founded as a maker of metallic bakery containers in Chicago in 1898 — grew by acquiring thermoformers Packaging Direct Inc. and Stone Plastics Inc. in 2005 and 2006. CM itself then was acquired in 2011 by fellow thermoformer D&W Fine Pack LLC.

    "There was some fallout at first," said Faber, who spent 24 years at CM, including the final six as president and CEO. "Some owners didn't see things our way, but the acquisitions had a good effect on the company over time."

    Faber now is co-owner of Integrated Packaging Films Inc., a film and sheet extruder based in Ayr, Ontario.

    The acquisitions of Stone and PDI fueled organization growth at CM and helped CM with "cross-selling and cross-relationships," he added.

    RECOMMENDED FOR YOU
    SunMed buys Vyaire Medical consumables unit
    Letter
    to the
    Editor

    Do you have an opinion about this story? Do you have some thoughts you'd like to share with our readers? Plastics News would love to hear from you. Email your letter to Editor at [email protected]

    Most Popular
    1
    PepsiCo on a ‘multiyear journey' toward bioplastics
    2
    Solar cell film producer investing $147M in Georgia
    3
    Michigan injection molder doubling space to support growth
    4
    Biden sets US goal to replace 90% of plastics with biomaterials
    5
    Plastics recycling must do better by consumers to succeed, professor says
    SIGN UP FOR OUR FREE NEWSLETTERS
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    Get our newsletters

    Staying current is easy with Plastics News delivered straight to your inbox, free of charge.

    Subscribe today

    Subscribe to Plastics News

    Subscribe now
    Connect with Us
    • LinkedIn
    • Facebook
    • Twitter
    • Instagram

    Plastics News covers the business of the global plastics industry. We report news, gather data and deliver timely information that provides our readers with a competitive advantage.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI 48207-2997

    Customer Service:
    877-320-1723

    Resources
    • About
    • Staff
    • Editorial Calendar
    • Media Kit
    • Data Store
    • Digital Edition
    • Custom Content
    • People
    • Contact
    • Careers
    • Sitemap
    Related Crain Publications
    • Sustainable Plastics
    • Rubber News
    • Tire Business
    • Urethanes Technology
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • News
      • Processor News
        • Injection Molding
        • Blow Molding
        • Film & Sheet
        • Pipe/Profile/Tubing
        • Rotomolding
        • Thermoforming
        • Recycling
      • Suppliers
        • Machinery
        • Materials
        • Molds/Tooling
        • Product news
        • Design
      • More News
        • K Show
        • Mergers & Acquisitions
        • Sustainability
        • Public Policy
        • Material Insights Videos
        • Numbers that Matter
      • Digital Edition
      • End Markets
        • Automotive
        • Packaging
        • Medical
        • Consumer Products
        • Construction
      • Special Reports
        • Processor of the Year
        • Best Places to Work
        • Women Breaking the Mold
        • Rising Stars
        • Diversity
        • Most Interesting Social Media Accounts in Plastics
      • Newsletters
      • Resin pricing news
      • Videos
    • Opinion
      • The Plastics Blog
      • Kickstart
      • One Good Resin
      • Pellets and Politics
      • All Things Data
      • Viewpoint
      • From Pillar to Post
      • Perspective
      • Mailbag
      • Fake Plastic Trees
    • Shop Floor
      • Blending
      • Compounding
      • Drying
      • Injection Molding
      • Purging
      • Robotics
      • Size Reduction
      • Structural Foam
      • Tooling
      • Training
    • Events
      • K Show Livestream
      • Plastics News Events
        • Plastics News Executive Forum
        • Injection Molding & Design Expo
        • Plastics News Caps & Closures
        • Women Breaking the Mold Networking Forum
        • Plastics in Automotive
      • Industry Events
      • Injection Molding & Design Expo
      • Livestreams/Webinars
        • PN Live: Mergers and Acquisitions
      • Editorial Livestreams
        • Polymer Points Live
        • Numbers that Matter Live
        • Plastics in Politics Live
        • Sustainable Plastics Live
      • Ask the Expert
      • Plastics News Events Library
        • Plastics Caps & Closures Library
        • Plastics in Healthcare Library
        • Women Breaking the Mold Networking Forum Library
      • Processor of the Year submissions
    • Rankings & Data
      • Injection Molders
      • Blow Molders
      • Film Sheet
      • Thermoformers
      • Pipe Profile Tubing
      • Rotomolders
      • Mold/Toolmakers
      • LSR Processors
      • Recyclers
      • Compounders - List
      • Association - List
      • Plastic Lumber - List
      • All
    • Directory
    • Resin Prices
      • Commodity TPs
        • Historic Commodity Thermoplastics
      • High Temp TPs
        • Historic High Temp Thermoplastics
      • ETPs
        • Historic Engineering Thermoplastics
      • Thermosets
        • Historic Thermosets
      • Recycled Plastics
        • Historic Recycled Plastics
    • Custom
      • Sponsored Content
      • LS Mtron Sponsored Content
      • Conair Sponsored Content
      • KraussMaffei Sponsored Content
      • ENGEL Sponsored Content
      • White Papers
      • Classifieds
        • Place an Ad
        • Sign up for Early Classified