Kohlberg & Company has completed its acquisition of Pexco and merged the company with its existing portfolio company PPC Industries. The newly merged company is named Spectrum Plastics Group. Pexco has been a portfolio company of Odyssey Investment Partners since August 2012.
Spectrum designs and manufactures custom and specialty plastics products for niche, high value-added end markets, including medical, food and industrial applications. The company has multiple manufacturing capabilities including thermoplastic and silicone tubing extrusion, injection molding, film, packaging, assembly and value-add manufacturing. The company has 20 facilities located in five countries (United States, Mexico, Costa Rica, Ireland and Malaysia) and approximately 2,000 employees. Spectrum is headquartered in Alpharetta, GA (www.spectrumplasticsgroup.com).
“Since Kohlberg’s acquisition of PPC in 2014, our goal has been to build a broadly diversified medical componentry leader. The combination of Pexco with PPC represents the ideal next step in our achievement of this vision,” said Roger Prevot, Operating Partner at Kohlberg and the Chairman of Spectrum Plastics.
The formation of Spectrum specifically merges the medical products manufacturing of Pexco and PPC Industries’ Kelpac Medical business. The combined medical operations now consist of 15 manufacturing facilities and feature both thermoplastic and silicone technologies (www.pexco.com) (www.ppcind.com) (www.kelpacmedical.com).
“We now bring a full spectrum and in most cases unmatched set of specialty plastics capabilities to the medical device sector, so the opportunity to relaunch our brand, one with a long history in medical devices and strong brand equity with our customers, was compelling,” said Mauricio Arellano, the President of Spectrum’s medical division.
“We are thrilled to have closed this transaction and to announce the launch of our new, combined company, Spectrum Plastics Group,” said Neil Shillingford, the Chief Executive Officer of Spectrum Plastics Group. “There are few businesses as unique and well-resourced as Spectrum Plastics Group in the market today, and we aim to support our customers with our broad range of manufacturing technologies and products.”
Kohlberg & Company invests in companies in the industrial manufacturing; consumer products; business services; healthcare services; and financial services sectors. The firm concentrates on companies with EBITDAs between $20 million and $100 million where it can invest between $50 million and $200 million of equity. Kohlberg & Company was founded in 1987 and is based north of New York City in Mt. Kisco, NY (www.kohlberg.com).
© 2017 Private Equity Professional | May 10, 2017
