Dallas Plastics Corp. has a new owner that plans to expand the specialty blown polyethylene film maker internally and via acquisitions.
Sole Source Capital LLC, a Santa Monica, Calif., private equity firm, paid an undisclosed amount for the company in Mesquite, Texas, about 20 miles east of Dallas. The film maker, founded in 1989, also has locations in Longview, Texas, and Wentzville, Mo.
Sole Source announced the acquisition Oct. 7 and named Dallas Plastics President Kevin Pierce chief executive officer. The investment is SSC's 12th in the four years since it was launched. Dallas Plastics, which employs 120 and operates 31 film lines, is the private equity firm's first manufacturing investment.
SCC partner Scott Sussman and Pierce declined to reveal details of the transaction or specific plans for Dallas Plastics, other than to say they will be targeting film extrusion businesses to acquire.
Pierce said the deal came about because Dallas Plastics wants to grow.
"We had a vision for growth and expansion and were looking for a partner that could help us realize that," Pierce said by phone Oct. 9. "The opportunity came along for SSC to provide us with the operational expertise and resources. … It was a perfect fit."
SSC Managing Partner David Fredston said in a news release, "Our team identified the flexible packaging space as an area of focus for Sole Source due to its attractive end markets — primarily medical and food." Plans include "investing in technology and additional capacity, while growing the business through acquisitions."
Pierce is taking over the CEO role for his father, Dallas Plastics founder Dennis Pierce, who will continue with the company as senior adviser.
Kevin Pierce said he grew up in the business: "I think I pulled my first roll off a machine when I was 8 years old." He did take time off to obtain a philosophy degree and worked for 12 years for the Los Angeles Police Department — the final seven years as a detective. Those achievements, he said, helped him develop skills that have "translated very well into corporate America": problem-solving, critical thinking and people skills.
Dallas Plastics reported 2019 sales of $47 million, placing it at No. 95 in Plastics News' latest ranking of 171 North American film and sheet makers. In addition to food packaging and medical, the company serves the industrial, agricultural and consumer products markets and offers bag-making and printing services.
Dallas Plastics Corp. is a specialty blown polyethylene film maker in Mesquite, Texas.
Dallas Plastics Corp. photo