Acquisition creates new plastics processor
Called Spectrum Plastics Group, the new company designs and makes custom and specialty plastics products focusing on niche, high value-added end markets, including medical, food and industrial applications.
New York-based private equity firm of Kohlberg & Co. LLC has acquired precision injection molder Pexco LLC and merged it with its PPC Industries Inc. business to form a new entity called Spectrum Plastics Group.
The terms of the transaction have not been disclosed.
Spectrum Plastics Group will feature multiple thermoplastic and silicone tubing extrusion, injection molding, film, packaging, assembly and value-add manufacturing technologies across 20 plants, five countries, and three continents, comprising more than 2,000 employees.
“We are thrilled to have closed this transaction and to announce the launch of our new, combined company, Spectrum Plastics Group,” said Neil Shillingford, Spectrum’s CEO. “There are few businesses as unique and well-resourced as Spectrum Plastics Group in the market today, and we aim to support our customers fully with such a broad range of manufacturing technologies and products.”
According to Shillingford, the formation of Spectrum Plastics Group “creates a more comprehensive suite of medical solutions under one provider” by combining the related capabilities previously under Pexco Medical and Kelpac Medical. The medical business will consist of 15 manufacturing facilities across the globe and feature both thermoplastic and silicone technologies. Both Pexco and PPC Industries, however, will retain their industrial brands and marks for industrial profile extrusion and industrial packaging businesses respectively.
The Spectrum Plastics Group name belonged to the Pexco portfolio of brands as a result of its acquisition of the Minneapolis, Minn.-based based precision injection molder in 2013. It is relaunching with a new mark and logo.
“Since Kohlberg’s acquisition of PPC in 2014, our goal has been to build a broadly diversified medical componentry leader,” said Roger Prevot, operating partner at Kohlberg and chairman of Spectrum Plastics Group. “The combination of Pexco with PPC represents the ideal next step in our achievement of this vision.”
The brand will formally launch at the Medical Design and Manufacturing trade fair (MD&M East) in New York City later next month.