Clearwater Beach, Fla. — Plastek Industries Inc. is pursuing growth through acquisition, a strategy that the company hasn't actively pursued for a few years.
"We want to be a sustainable family business, for ourselves and for the families of our current and future co-workers in the communities that we serve," CEO Dennis Prischak said in an interview at the Plastics News Executive Forum in Clearwater Beach.
"Certainly organic growth is really an excellent way to grow. But acquisitions can play a role too, for a lot of reasons," he said. "It's an entry into some new customers, perhaps it's an entry into some adjacent markets and processes. And it also brings a fresh set of eyes and new experiences.
"So there's a lot of good reasons to keep your eyes open and find out if there's an acquisition that's a really good fit," Prischak said.
The last M&A deal that Plastek did was in 2015, when it bought IPQ, an injection molder and assembler in Querétaro, Mexico.
"That was a family business where the cultures fit and a whole lot of things worked. For us, it was a diversification play," Prischak said. "We grew and added some customers, and it's turned out really, really well."
Since then, the pandemic, supply chain headaches and high resin costs put M&A on hold. Now the company wants to use acquisitions as a strategic tool — complementing organic growth — to help double sales by 2030.
Plastek, which is based in Erie, Pa., was founded by Joseph Prishak in 1956. Today the company is led by four of his sons — Dennis, Daniel, Douglas and Donald.
The company's roots are in toolmaking and it is also one of the 20 largest North American injection molders, according to PN data, with annual molding sales in the region of $450 million. Plastek also has operations in England and Brazil.
At the Executive Forum, Plastek announced a strategic partnership with Blaige & Co. The Chicago-based investment bank is headed by CEO Thomas Blaige.
"He and his company have a great reputation in the M&A space for sure," Prishak said. "He's a buy-side guy. So we're looking forward to what can come out of it."
Blaige said Plastek offers potential sellers "a great alternative to private equity buyers," since the Prischak family has a long-term view and a conservative capital structure.
Plastek is interested in injection molders of packaging and medical devices, or those in blow molding, thermoforming, rotational molding, 3D printing, polymer casting and contract filling.