French private equity Ardian has made its first foray into North America's injection molding market, and it is looking for more plastics acquisitions.
Ardian has agreed to buy custom molder Revere Plastics Systems LLC, a four-factory company based in Clyde, Ohio. Ardian expects to finalize the purchase by the end of the year. It did not disclose terms.
"This is a platform for growth," said Ardian official Vincent Fandozzi in a phone interview. "We are looking for other acquisitions."
Revere Plastics had injection molding sales of about $225 million last year, according to Plastics News data. Appliances are its main market but it also sells into automotive, outdoor power equipment and other industries.
Revere Plastics' range of value-added services was a big attraction, according to Fandozzi, who heads the Ardian North America direct buyouts team. The molder's capabilities range from prototyping to welding to multi-shot molding and assembly.
The next acquisition would ideally be a firm doing a lot of value-added work, Fandozzi said. Other attractions would be geographic expansion and new technology. Fandozzi said Ardian is also counting on internal growth for its investment in Revere Plastics.
Revere Plastics has been exploring new markets and has extra capacity to accommodate new orders. Its Jeffersonville, Ind., facility, for example, has not run near capacity since it opened in 2013. That facility has been the firm's most profitable and won a Most Improved Supplier Award from GE Appliances in 2016.
The plant recently garnered new business from customers such as auto parts major Grupo Antolin and power equipment motor manufacturer Briggs & Stratton.
Revere Plastics President Glen Fish said his company's internal growth and interest in acquisitions aligns with Ardian's strategies. A broader customer base would be key but geography and technical capabilities are also important among potential takeover targets, Fish said by phone.
"Ardian's support will allow us to invest in additional capacity and new technologies enhancing our capabilities to serve our customer base," Fish explained.
Fish said Revere Plastics also is beginning to develop proprietary products. Business-to-business goods are at the forefront but the company is also open to consumer products.
Doug Drummond, Revere Plastics director of new business development, said recent investments should help the company gain new business. The company has strengthened its prototyping ability with a new 3D printer. Also new is a Faro laser scanner that can scan an object and convert data to a CAD file that can be manipulated for iterations in new product development. Drummond and Fish believe the scanner will be instrumental in helping customers convert products from metal to plastics.
Revere Plastics was founded in 2005. It employs about 1,100 in Clyde, Jeffersonville, Poplar Bluff, Mo.; and Brampton, Ontario. It currently is owned by Revere Industries LLC, a Harahan, La., industrial conglomerate active in power supplies, tools, security products and commercial sound equipment.
Ardian has interests in very diverse goods and services companies. It has stakes in several plastics-related companies but it does not plan to integrate any of them with Revere Plastics, Fandozzi told Plastics News.
Ardian's portfolio includes French company iPackchem, a pioneer in fluorination treatment to improve barrier properties in containers; ProAmpac, a U.S.-based flexible packaging company with expertise in extrusion and lamination; SIG, the second largest global producer of aseptic carton packaging systems and filling machines, and Kangji Medical, a medical device and consumable producer in China.
Ardian launched North America direct buyouts in October 2016 when it brought on board Fandozzi and other personnel from New York private equity Seven Mile Capital Partners. Revere Plastics will be the second transaction for the buyout unit, the first being Dynamic Technologies, a U.S. producer of automotive metal fluid-handling systems.
Ardian, headquartered in Paris, was founded in 1996. Its portfolio includes $66 billion of assets managed or advised. Global law firm Sheppard, Mullin, Richter & Hampton LLC represented Ardian in the deal.