An affiliate of a private equity and investment firm based in Plymouth, Mich., has purchased two injection molding supply firms based in Brighton, Mich.
AIC Acquisition Company LLC, an affiliate of Stratford-Cambridge Group, acquired Plasti-Co Equipment Co. and AIC Equipment & Controls Inc., according to a news release.
The transaction closed June 28.
Plasti-Co, a maker of aftermarket injection molding components such as barrels, feed screws, screw tips and nozzles, and AIC, which provides equipment, components and service to the plastics processing and heat treating industries, both operate in the same building in Brighton, Steve Ellis, managing director and founder of SCG, said.
Wayne Limbright, the seller of the two divisions, will continue to lead product development and will maintain a stake in both brands, according to a news release.
SCG hired Greg Reppuhn to serve as chief financial officer, and a search is currently underway for a president and CEO, Ellis said.
The divisions have 50 employees combined. None were laid off as a result of the transaction, he said.
A warehouse for overflow inventory in Wixom, Mich., was also a part of the deal, but the Brighton property was not included. SCG is searching for a new home about twice the size in the same area, Ellis said.
SCG was attracted to the growth demonstrated by Plasti-Co, which Ellis said has grown without much effort in areas such as sales and marketing.
Moving forward, the firm would like to double the Plasti-Co side of the business within five years through adding sales and marketing resources, according to Ellis. He declined to provide the purchase price and revenue figures for either brand, but said the firm invests in companies that generate between $10 million and $50 million in annual sales.
The firm, which is focused on acquiring niche manufacturing companies in the Midwest and Great Lakes region, owns four other manufacturing companies in the Midwest, including Sterling Technologies Inc. and Livonia-based Aetna Bearing Co.