A sale of Molded Devices Inc. just made too much sense, the company's founder said.
Private equity firm TruArc Partners LP is buying the Tempe, Ariz.-based plastics and rubber company from PNC Mezzanine Capital as founder Brian Anderson said prices being offered for companies these days essentially were too good to pass up.
Molded Devices makes most of its money in plastics but has a robust business in the smaller rubber dip molding market that accounts for about 10 percent of the firm's revenue, Anderson explained.
On the plastics side, the company provides injection molding, tube extrusion and blow molding as well as dip molding.
Molded Devices has grown to have sales of more than $100 million annually, Anderson said, and he expects that growth to continue under new ownership.
PNC Mezzanine Capital first invested in Molded Devices at the end of the 2015, bringing deeper pockets to allow for continued growth at a company that had been self-financing up until then. Private investors often remain anywhere from three to seven years before cashing out, so the sale to TruArc made sense for PNC, Anderson explained.