Adler buys mold maker R&D/Leverage to expand reach, capabilities

Omaha, Neb.-based Adler Industrial Solutions Inc. has acquired R&D/Leverage Co. of Lee's Summit, Mo., to add scale, capabilities and European manufacturing facilities that serve a global customer base.

This is the third acquisition by Adler in the past year. The company now is likely among the Top 10 mold makers in North America, excluding the large automotive specialists.

Terms of the R&D transaction were not disclosed but Adler CEO Philipp Gruner said in an email that the acquired company's sales typically exceed $40 million annually.

Founded in 1975 by Ivan and Ardith Drienik, R&D manufactures molds for the food and beverage, personal care, and health care markets. The company was a pioneer in developing complex tooling solutions for injection and blow molding.

R&D currently has more than 250 employees split between its 180,000-square-foot and 60,000-square-foot manufacturing facilities in Lee's Summit and Sutton-in-Ashfield in the United Kingdom, respectively. Adler plans to retain all employees.

"R&D is a global brand known for its exquisite craftsmanship. The skill and talent of the team was the most attractive aspect of the acquisition," Gruner said. "The fact that it allows us to expand globally was an added bonus. In addition, the U.K. has been running mostly on its own over the years and has built a world-class management team. This makes managing a global organization far easier."

In addition to the Lee's Summit and U.K. sites, Adler acquired the R&D Prototype and Hi-Tech Welding businesses in Lee's Summit as well as R&D's many patents.

Gruner called the acquisition of R&D a "milestone addition," saying it adds adjacent markets, such as blow molds, injection stretch blow molds, preform molds and higher complexity injection system molds to Adler's capabilities while expanding its geographic reach within the United States and internationally.

"Up to the acquisition, Adler was not exposed to the blow mold market at all," Gruner said. "It is fantastic to expand the services we can offer to our existing and future customer base. Higher complexity injection mold systems were already available within Adler's portfolio companies, however, we were limited in size. R&D gives us the capability to now offer higher cavitation for our customers who require a higher EAU [estimated annual units]."

As a part of Adler, R&D will benefit from additional resources and investment, according to Adler Chief Financial Officer Reid Taradash.

"We just acquired two brand new horizontal mills in the U.K. that will arrive in a couple of months. In the U.S., we are evaluating sinkers and other equipment," Taradash said in an email.

Ardith Drienik said in a news release that the sale to Adler is the ideal pathway forward for the company that she and her late husband, Ivan, founded and dedicated their lives to building.

"When I met the Adler founders, I knew I had found the right buyer. I wanted someone that shared my husband's love of manufacturing and engineering, and someone who appreciates the value and contributions of the employees," Drienik said. "I feel Ivan would agree with this decision that the Adler team's track record, energy, and vision will make them the ideal stewards of this amazing company."

Launched in 2021, Adler is growing through acquisitions of companies with niche talents and expertise. The company bought Shorts Tool and Mfg. Inc. in Saegertown in May 2021, and then added Rapid Mold Solutions Inc. of Erie, Pa., to it in October 2021 as part of a plan to build a network of companies with complementary capabilities in western Pennsylvania.

Earlier this year, Shorts was rebranded as Pinnacle Molds Inc. to better identify the business as a supplier of precision and tight-tolerance injection molds and mold components while reflecting Adler's investments in improved machinery, tools, software and processes.

Pinnacle manufacturers close-tolerance, multi-cavity plastic injection molds and ancillary products primarily for the medical, consumer goods, aerospace and industrial markets.

Adler officials plan to continue to expand in Pennsylvania but they said acquiring R&D was a critical step to branch out geographically.

"This is our third acquisition and we plan on acquiring one more business later this year," Taradash said. "Our plan is to continue to grow and this will likely include organic initiatives [purchases of land, buildings, machinery, increases of personnel] and additional company acquisitions. There are just so many excellent mold makers out there where the owner is ready to retire, and he doesn't have a succession plan."