Orchard Creek Capital LLC has scooped up another acquisition, this time buying custom injection molder Action Molding Inc. of Grand Rapids, Mich.
The deal is Orchard Creek's fourth since the private equity firm was founded in 2017 in Northville, Mich., near Detroit.
Orchard Creek President Jon Carlson said by phone his firm plans to add two 1,000-ton presses to Action Molding's lineup, which will boost capacity about 20 percent.
Action's founder, Michael Fassbender, will continue to hold "a significant amount" of equity in the business and will stay with the company as head of sales. That's how Orchard Creek likes to do business, Carlson said — retaining seasoned local leadership.
Action Molding and Machining Inc. launched in 1997 and shortened its name to Action Molding Inc. after selling its tooling business in late 2021 to SyBridge Technologies LP of Southfield, Mich.
Action employs 17 in a 20,000-square-foot facility that runs 24 hours a day, five to six days a week. The plant's 10 injection molding machines, with clamping forces of 100–700 tons, primarily produce parts for office furniture, appliances, consumer and industrial goods.
Carlson said the company also makes a growing proprietary line of flower pots geared toward the horticulture industry.
Carlson called Action Molding "an excellent fit" for Orchard Creek, which is working to build a U.S. network of independent plastics processors. All its acquisitions are plastics-related: injection molders Classic Die Inc. in Grand Rapids and Tool Technology Corp. in Inman, S.C., and thermoformer Advantage Plastics of New York Inc. in Winter Haven, Fla.
"We hope to complete additional acquisitions this year. We have several in the pipeline," though no deals are imminent, he said.
Orchard Creek looks to acquire growing companies with annual sales of $4 million to $15 million and profit margins greater than 10 percent. Often it seeks out a company owner looking to retire, transfer the business to family members, recapitalize for growth or complete a management buyout.