Adell Group Inc. has acquired Buffalo, N.Y.-based Powerflow Inc., Powerflow Products Ltd. in Toronto and Gestion Solutions Plastik Inc. in Magog, Quebec.
Terms of the deal, announced June 26, were not disclosed.
Gestion Solutions Plastik is the injection molder, with Powerflow Inc. and Powerflow Products operating as the distribution companies, according to Tom Tuttle, managing director of New York private investment firm Kinderhook Industries LLC. The firm purchased Adell in March for an undisclosed amount.
Going forward, the three companies will operate as a subsidiary of Adell. Doug Ward, founder and CEO of Powerflow, will remain in his current role.
Adell makes proprietary door edge guards as original equipment for automakers at its facility in Sunnyvale, Texas. It has a full range of capabilities including injection molding, extruding, tooling, engineering, metal fabricating, painting and packaging.
With Powerflow — Adell's first acquisition and Kinderhook's 75th automotive-related transaction — the company can expand its offering of products that car dealers and automakers usually try to sell to consumers as vehicle add-ons, Tuttle said.
"That's the market we're targeting here," he said in a July 2 phone interview with Plastics News. "The plan is to continue to build a company, focusing on products that the car manufacturers want to sell to the customers through their dealerships."
Tuttle said the company is looking for additional acquisitions in that space.
Powerflow manufactures and distributes plastic injection molded trim products, including splash guards, body side moldings, bumper protectors and door sills, to automotive dealers and original equipment manufacturers. Customers include major automakers such as Toyota, Lexus, Subaru, Nissan, Infiniti, General Motors and Chrysler.
"Powerflow represents a transformational acquisition for Adell as it expands its geographical presence, customer base and product offerings," J. Pearson, Adell's CEO, said in a statement.
Pearson had been an operating partner at Kinderhook since 2006 before joining Adell as CEO when the firm acquired it earlier this year.
"We look forward to working with the Powerflow team to continue building upon their strong brand name and track record," he added.