Private equity group MPE Partners has purchased tubing and profile extruder Teel Plastics Inc. in a move which it says will allow the company to "capitalize on significant growth opportunities."
Baraboo, Wis.-based Teel was founded in 1951 and was the 2016 Wisconsin Manufacturer of the Year.
It was No. 58 in the most recent Plastics News ranking of pipe, profile and tubing extruders in North America with an estimated $54 million in sales.
The company has won business by offering new technology, including a recent project to provide nylon tubing for a natural gas pipe in Henderson, Ky.
The Smith family owned Teel and has been seeking a financial partner, MPE said in a news release.
"The Smith family is proud of the success we've had building Teel into a world-class plastics processor over the past two decades, and we have a future of exciting growth planned," said Teel Chairman Jay Smith in a statement.
"We are confident that, together with MPE, we will continue to innovate, deliver quality products to our customers and execute on our growth plan. We are excited to utilize the capabilities, resources and capital that MPE brings to support this next chapter of growth," he said.
Terms of the deal were not disclosed.
Around summer 2018, Teel invested at least $1 million to upgrade its production and control systems in a move to increase its stake in the medical market. At that time, Teel reported about 245 employees.
MPE, which was founded in Cleveland and co-headquartered today in Boston, invests in lower middle market companies with $5 million to $20 million of EBITDA, usually targeting those in high-value manufacturing and industrial services. The firm is currently investing out of its MPE Partners II fund, which carries a target size of $250 million.
P&M Corporate Finance (PMCF) served as the financial adviser to Teel Plastics.