Mitsubishi Chemical Advanced Materials, formerly Quadrant Group, has purchased Advanced Polymer Technologies (APT) in Stockton, Calif., to expand its product portfolio and North American footprint with an eighth manufacturing facility.
Founded in 2002, APT extrudes plastic stock shapes for machined parts and sells them under the Semilon brand for applications such as medical devices, semiconductor production equipment, oil and gas exploration and aerospace platforms. The company has operated from a 60,000-square-foot facility in Stockton since 2013.
The acquirer, a U.S. subsidiary of Mitsubishi Chemical Holding Co. in Tokyo, likely paid $13.9 million (1.5 billion yen) for APT so it can offer more engineered plastics as demand grows for 5G communication networks and interconnected devices, according to a report by the Nikkei Asian Review.
Mitsubishi Chemical CEO Michael Koch said the company will benefit from APT's technology, specialized skills and market expertise in serving "strategic global influencers" in North America and Asia.
"The acquisition enhances our ability to incubate and develop new solutions for the customer, pursuing our mission of metal to plastic conversion, which began more than 80 years ago," Koch said in a news release.
Mel Ettenson, editor and publisher of Global Plastics Letter, said the likely sales price is close to his estimate for APT’s revenues, which he puts at $15 million based on the company employing 25 people at a 60,000 square foot plant.
Ettenson figures Mitsubishi Chemical, which he says has a complex corporate structure, has global revenue of about $750 million with North America representing about 50 percent of the total.
Mitsubishi Chemical will preserve APT's market identity, Koch said.
"Strategic corporate development activities, such as the Advanced Polymer Technologies acquisition, contribute to Mitsubishi Chemical Advanced Materials ability to grow rapidly and consistently while maintaining quality and innovation," Koch said.
Bernie Willms, president of Mitsubishi Chemical Advanced Materials Americas, said APT has an impressive history of servicing current and emerging market needs for advanced engineering grades of thermoplastics.
"This, coupled with their high level of quality and service, will enhance our goal to be an agile, customer-focused manufacturer," Willms said in the release.
APT President and CEO Steve Kessler said the company has been investing in new technology to develop unique materials and processes for 17 years but could use help growing.
"Joining Mitsubishi Chemical Advanced Materials will allow us to expand our product portfolio, and continue to deliver fast and efficient services on a global scale. We are excited to merge our existing team with the experts at Mitsubishi Chemical Advanced Materials," Kessler said in the release.
Mitsibishi Chemical has sites in 20 countries employing more than 2,400 people to manufacture semi-finished and finished parts for a variety of markets but primarily the capital goods. The company acquired Quadrant in 2013 but didn't change the name until this April.