Kruger Plastics Products, a portfolio company of HC Private Investments, has acquired sister companies Northern California Injection Molding and El Dorado Molds (together NCIM).
NCIM provides fully-integrated plastic manufacturing and engineering services to companies that are active in the medical, industrial and heavy-duty diesel engine markets. The company has clean room manufacturing capabilities and a 93,800 sq. ft. facility equipped with 37 injection molding presses ranging from 40 to 500 tons in Rancho Cordova, CA (www.ncimolding.com) (www.eldoradomolds.com).
Kruger Plastic Products is a custom injection molding manufacturer of niche products and components. The company’s services include design and engineering, raw material selection, processing, assembly and packaging. Kruger has 47 injection molding machines ranging in size from 25 tons to 1,000 tons, and has a full-service mold making and repair department with CAD/CAM capabilities.
Kruger’s customers are active in a number of industries including homecare, furniture, electronics, hardware, healthcare, automotive, art and hobby, and communications. Kruger was founded in 1975 and has 300,000 sq. ft. of manufacturing space in four locations in Michigan and North Carolina. The company is headquartered in Bridgman, MI (www.krugerplasticproducts.com).
HC Private Investments (HCPI) acquired Kruger Plastic Products in December 2017. The combination of NCIM and Kruger – now operating under the name Springboard Manufacturing – creates a company with manufacturing facilities in California, Michigan and North Carolina with over 100 injection molding presses and more than 250 employees (www.springboardmfg.com).
“This is a transformative transaction that provides Springboard with world-class toolmaking capabilities and injection molding operations and enhances our ability to service our blue-chip clients from coast-to-coast,” said Doug Constable, CEO of Springboard. “NCIM has played an integral role in its customers’ manufacturing process for nearly 30 years, and their customer-centric approach and culture of operational excellence make them an ideal fit for Kruger, and now Springboard.”
HCPI is looking to continue the expansion of Springboard through a combination of organic growth and add-on acquisitions. “We are thrilled to be supporting Springboard’s growth by expanding its manufacturing footprint and providing the business with enhanced capabilities to attract and service customers, including those in the medical device sector,” said John Kelly and Matthew Moran, managing partners of HCPI, in a released statement.
HCPI makes investments between $5 million and $30 million in lower-middle market manufacturing companies ranging in size from $10 million to $100 million in enterprise value. Sectors of interest include consumer and industrial. HCPI was formed in June 2017 by HC Technologies, a Chicago-based financial trading firm, and is led by its managing partners John Kelly and Matthew Moran. Mr. Kelly was previously a vice president with The Tokarz Group Advisers and Mr. Moran was a vice president at Wind Point Partners. HCPI is headquartered in Chicago (www.hcprivateinvest.com).
Twin Brook Capital Partners (www.twincp.com) provided financing to support HCPI’s buy of NCIM. Chicago-based Twin Brook is the middle market direct lending arm of Angelo Gordon. The firm targets senior financing opportunities up to $400 million with hold sizes across the Twin Brook platform ranging from $25 million up to $150 million. The firm provides financing to support sponsor-led buyouts and recapitalizations of companies with $3 million to $50 million in EBITDA, with an emphasis on companies with $25 million of EBITDA and below.
Oak Hill Securities was the financial advisor to NCIM.
© 2019 Private Equity Professional | February 28, 2019