Family-owned Lakeland Plastics Inc. and Derby Fence Co., which are based at the same site in Mundelein, Ill., were acquired by a family of investors based in Chicago.
The companies did not identify the new owners.
Founded in 1962, Lakeland extrudes profiles, rods and tubing for the lighting, refrigeration, construction, industrial, consumer products, water treatment, telecom and signage markets. The business also offers design, tooling and 3D printing.
Derby extrudes thick-walled high density polyethylene fencing with two to four rails of internal ribbing for enclosing livestock, pasture and ranch lands. The business is the nation's leading provider of HDPE fencing for animal containment, according to a May 15 news release announcing the deal, which closed April 23.
Terms of the transaction were not disclosed.
Several generations of the family have operated the two businesses, which were sold to a family that shares the same core values and plans to preserve the company's culture.
"The continuity of values and culture that have been instilled in the business over the historical 45-plus years was a critical component in selecting a potential buyer," Phil Pizzurro, managing director of mergers and acquisitions at Generational Capital Markets LLC, which is based in Dallas, said in the release.
Generational Capital represented the seller, which Pizzurro described as successful and poised for long-term growth. The sellers were fortunate to find a family with a similar vision for the employees, who all will be retained, he said in an email to Plastics News.
“The employees are critical to the business and our intention is to retain and further incentive each of them,” Pizzuro said.
Lakeland employs industry veterans and experts in a range of processes, including crosshead extrusion coating, coextrusion, tri-extrusion and fabrication. One of the products they manufacture, called Joistmate for utility supplier William Frick & Co., is placed between wooden attic joists to create platforms that improves safety for telecom installers. The HDPE platforms weigh just 10 pounds but can support up to 700 pounds.
The new owners don't plan to make any changes while they learn more about the business, employees and culture, according to Pizzuro's email.
“After the first 6 to 12 months, the new owners will be motivated and well-positioned to continue investing and expanding upon Lakeland's competitive advantages while allocating funds towards more proactive growth initiatives,” he told Plastics News. “The ultimate goal is to make the appropriate investments in Lakeland that will benefit the business, employees, and customers for the next 20 to 30 years rather than focusing on an abbreviated return on investment.”