Indiana investment firm South Central Inc. is buying rotational molder Fibertech Inc. and said it plans to expand the company and scout other potential manufacturing acquisitions.
Fibertech, in Elberfeld, Ind., rotomolds proprietary material handling and bulk containers for end markets like agriculture, health care, maritime, recreation and recycling. It employs 130.
Terms were not disclosed.
South Central is a family-owned investment firm in Evansville, and in a July 1 statement the two companies said the sale was motivated by the retirement of Fibertech founder Bill Scott and his desire for the company to keep growing.
"Bill wanted to find a good steward for Fibertech who shared similar values, care for employees, and commitment to the community," said Brent Rasche, Fibertech chief operating officer, who said South Central and the Engelbrecht family who own it "check all of the boxes" for that.
South Central CEO JP Engelbrecht will also become CEO of Fibertech, the firms said.
"Fibertech Inc. is a solid company with a history of successful operations," Engelbrecht said in a statement. "We are thrilled to help take this local business to the next level by investing in new production capacity, talent, and technology."
In an interview, Engelbrecht said Fibertech plans to add a fifth rotomolding machine later this year and said he sees "tons of opportunities for growth."
He said South Central is looking for other plastics or manufacturing companies to purchase, although he said additional investments may not be imminent.
"We have been targeting manufacturing in our region for some time now," he said. "We are somewhat industry agnostic."
But he noted that the Evansville area is home to a lot of plastics manufacturing, and he said South Central's board includes Bill Vieth, who co-founded Evansville-based compounder Omni Plastics LLC. Omni was bought by Celanese Corp. in 2018.
South Central said its investments span multiple industries including real estate, addiction treatment and private debt, and it said the Fibertech purchase will diversify its portfolio.
The 75-year-old company said in the statement it has "a preference toward owning investments indefinitely." It said most of its investments are in the $5 million to $20 million range.
Fibertech was founded in 1999, and in April announced it was adding a fourth rotomolding machine and planned to add 10 full-time employees.
The company ranked No. 34 in Plastics News' most recent survey of North American rotomolders with $15 million in 2019 sales. It has a 125,000-square-foot facility in Elberfeld.
Its material handling equipment is certified by the U.S. government for food use, and its containers also meet U.S. Department of Transportation standards for materials transport. It also recycles large industrial containers.