Germantown-based Plastic Components Inc. announced it has acquired Cary, North Carolina-based Syracuse Plastics of North Carolina Inc. The transaction closed March 1 for an undisclosed price.
Plastic Components is a portfolio company of Cleveland-based private equity firm MPE Partners. It uses manufacturing process automation to produce engineered and high-precision injection molded components for the plumbing, small engine and filtration markets. Plastic components has 82 employees at two Germantown facilities totaling 80,000 square feet. Its 42,000-square-foot plant on Bunsen Drive is staffed by two people during first shift, and is completely lights-out automated during second and third shifts, said Derrill Rice, chief executive officer of Plastic Components.
“It’s all through automation and system integration. It’s the Industry 4.0 version of a smart plant for plastics,” Rice said.
This is Plastic Components’ first acquisition, as the company works to drive strategic growth via expanded geography, technology and markets with the help of MPE.
Syracuse Plastics also manufactures engineered and high-precision injection molded components, but its products are used mainly in the industrial, pool and water products, telecommunications, power products and food processing sectors. The company was sold by Tom Falcone, CEO. Syracuse has 45 employees at its approximately 44,000-square-foot facility. All of its employees and current operations will remain in place in the transaction, Rice said.
“We plan to support the existing team and continue with investment to help grow their markets,” he said.
The acquisition expands Plastic Components’ geographic and market reach, but also gives added capabilities with Syracuse’s larger press sizes, Rice said.
“That was one of the attractive aspects of this opportunity is that the facility is both well organized and has room for expansion,” he said.
“I am very excited about this next chapter in the SPNC story,” Falcone said. “MPE brings capital and PCI brings capabilities and resources to an already great plastic injection molding foundation.”
MPE targets companies with EBITDA of between $5 million and $20 million.