Little Rock, Ark.-based investment firm Arcane Capital Partners has acquired injection molder and extruder Poly-Tech Plastic Molding Inc. in Prairie Grove, Ark., with plans to build a new platform under the brand.
“Our plan is to rebrand everything under the PolyTech name,” Michael Hickmon, CEO and managing partner of Arcane, told Plastics News in an interview.
Arcane, which is the parent company of injection molding companies Johnson Manufacturing Co. and Bentonville Plastics Inc., is currently integrating the companies’ systems to create the new platform.
“PolyTech was just perfect for us,” Hickmon said. “It’s in our own backyard; it allowed us to get a … foothold in the central U.S. … They were very well organized.”
There won’t be any changes for PolyTech’s current 120 employees as a result of the acquisition, he said, adding that the deal closed Dec. 23.
Under its new ownership and branding, PolyTech will have more than 200 employees, Jim Benton, former owner of PolyTech, told PN in an interview.
“They’re very ambitious; they have a vision of creating a plastics empire,” Benton said. “They’re planning to expand significantly both in terms of injection molding but also other areas of plastics processing.”
Arcane is “actively seeking acquisition targets … and will probably close three to four more [acquisitions] this year,” Benton added.
PolyTech and the other two companies’ existing customers have created enough increased demand to require the new platform “to add new machines and additional facilities later on in the year,” Hickmon said.
The combination and addition of PolyTech’s 65,000-square-foot facility allows Arcane to offer more services for existing customers and increase its production and distribution capabilities, a Jan. 12 news release said.
PolyTech and Johnson Manufacturing will continue to provide quality service to their customer bases under their respective brands for the foreseeable future and will remain located at their current facilities. Bentonville Plastics will be integrated into the operations of Johnson Manufacturing in Harrison, Ark., the release said.
“Our company has admired the work done at PolyTech, and we are thrilled to expand our production capabilities and capacities and continue to build a standard-setting plastics manufacturing company in North America,” Hickmon said in the release. “As we navigate the changing trends within the industry … we recognize the expertise PolyTech brings to the table and we look forward to combining our strengths as one company.”
The combined companies supply to industries like HVAC, electronic and telecom, water treatment and filtration, consumer products, medical, industrial, military, agricultural, energy and automotive.
Arcane plans to leverage its combined capabilities and scale to expand services in new industries as well, including consumer packaged goods and the food and beverage industry, the release added.
“The merger of these companies is a winning combination for all companies’ customers,” Benton said in the release. “PolyTech, Johnson Manufacturing and Bentonville Plastics have long been go-to plastics injection molding companies in this region. Combining PolyTech’s operational expertise, the strength of these companies in their respective industries and production capabilities, and the leadership of Arcane will certainly benefit all involved.”
Chicago-based Stout Investment Banking acted as sell-side adviser to Poly-Tech. Mike Benson, managing director, led the deal.