Mergers and acquisitions may not be setting records this year, but they've still been strong. That's especially true for proven firms supplying key industries such as health care.
Consider Molded Devices Inc., a Tempe, Ariz.-based molder with injection molding, tube extrusion, blow molding and dip molding that was just sold to TruArc Partners LP. TruArc purchased the stake in the company that PNC Mezzanine Capital had owned since 2015.
"The markets, in my opinion, got crazy in terms of the multiples being paid," founder Brian Anderson told PN's Jim Johnson.
Anderson and CEO Jack Slinger had been managing three to five incoming acquisition inquires each week, Anderson said. That was too many for them to handle so MDI hired advisers Piper Sandler to help out.
And it's not as if Anderson, Slinger and their team were unfamiliar with the M&A marketplace. Anderson bought his first company when he was 28. As of 2016 when Anderson spoke with PN for the What Keeps You Up At Night series, MDI had completed 10 acquisitions since 1998. And even after hiring Piper Sandler, Molded Devices put the sale process on hold so it could acquire Seitz LLC to expand its production base. The final value of the sale to TruArc has not been disclosed.
"But it's not all about price," Anderson said. "We wanted to have a good home."
And now that Molded Devices has a new financial backer, you can expect more deals to come.