Enviroplas Inc. is a good fit for Aurora Plastics, according to Darrell Hughes, CEO of the two firms that recently merged.
"Enviroplas fits squarely into our growth strategy and mission," said Hughes, who's been CEO of Streetsboro, Ohio-based Aurora since 2016. Aurora had done most of its work in PVC compounds and thermoplastic elastomers, while Enviroplas of Evansville, Ind., had focused on compounds based on polycarbonate, ABS and other engineering resins.
"There was almost no competitive overlap between us," Hughes said. "This was about capabilities, technologies and reach." Hughes added that he was familiar with engineering resins from his time with GE Plastics (now Sabic) earlier in his career.
Enviroplas was founded in 1992 and now employs 75 at two locations covering more than 120,000 square feet in Evansville. That site includes offices, R&D labs, testing and sampling areas, warehousing and shipping. Hughes said a new single-screw extrusion line is being added there.
Enviroplas CEO and founder Jim Stratman will remain a substantial shareholder and continue to lead growth as president of Enviroplas, which will be Aurora's engineered polymers business unit, reporting to Hughes. Enviroplas' leadership team and employee base will continue in their current roles.
In a news release, Stratman said that there are "tremendous cultural similarities" between Aurora and Enviroplas. "Most important of these is the focus on customer intimacy and partnership, enabling the continued growth of Aurora's engineered compounds and vinyl specialties businesses," he added.
In August, Aurora broke ground on a 20,000-square-foot expansion in Streetsboro. The expansion will include a new blending line that will increase the site's annual production capacity by 100 million pounds. It is set to be completed by the end of 2023 and will create 30 new jobs.
In addition to Streetsboro, Aurora has manufacturing plants in North Carolina, Quebec, Massachusetts and Texas. Major end markets for Aurora include siding, deck and rail, window and door, and footwear.
P&M Corporate Finance of Southfield, Mich., served as a financial adviser to Enviroplas. Aurora has been majority owned since August 2021 by investment firm Nautic Partners of Providence, R.I. Nautic has been an active plastics investor in recent years, most recently acquiring plastic plumbing products distributor Commercial Industrial Supply of Rock Hill, S.C., earlier this year.
Looking ahead, Hughes said Aurora "will continue to invest where it makes sense, either by investing in our own facilities or doing more deals in a related space where we can add capabilities or geography."
