It could have been a blockbuster announcement at NPE2018 but due diligence got in the way.
The two sides in Brampton Engineering LLC's acquisition by Davis-Standard were working on a deal as NPE approached and they hoped to announce a deal at the trade show. But the usual process of completing due diligence didn't happen fast enough, according to Brampton Engineering CEO Gary Hughes.
"It was our goal to say during NPE that the deal was done," Hughes told Plastics News in a June 4 phone interview. "But we had to go though the process."
Hughes declined to provide terms of the acquisition but he did say that Brampton Engineering's top executives were very hopeful the acquisition could be done.
"We needed to bring in new equity," Hughes recalled. "We are in a very fast-growing market segment and we needed more capital to support our growth."
Brampton Engineering's management liked the idea that an industry player could own their company rather than a private equity.
"We are like-minded in many ways," Hughes explained.
Hughes said the deal results in an "exceptionally strong supplier" in North America. Brampton Engineering's focus on multi-layer blown film helps fill out Davis-Standard's broad extrusion machinery lineup.
Davis-Standard bought the Brampton, Ontario, firm from Hughes and two management colleagues, who bought it in 2015 from private equity RBC Capital Markets. RBC had owned it for about 14 years. Prior to that, ownership centered around well-known extrusion expert Bill Wybenga, who will continue to provide consulting services under Brampton Engineering's new ownership. Hughes joined Brampton Engineering in 2013 as its new president and CEO.
Since late 2011, Davis-Standard has been owned by Oncap, a middle-market investing unit of Canadian private equity Onex Corp. Onex previously owned injection molding machinery maker Husky Injection Molding Systems Ltd. until it sold Husky in 2011.