Molded Devices, a portfolio company of PNC Mezzanine Capital, has acquired Seitz, a provider of plastic injection molding and assembly services. Since its founding in 1963, Molded Devices has now completed 15 add-on acquisitions.
Seitz products include precision plastic gears and electromechanical assemblies that are used in the medical, automation, consumer and automotive markets. Seitz is headquartered near Hartford in Torrington, Connecticut with additional operations in China.
Molded Devices (MDI) is a designer and manufacturer of injection molding, dip molding, dip coating, powder coating, extrusion, and blow molding products and assemblies used in the medical and specialty industrial markets.
According to MDI, it is the largest dip molder and dip coater of custom products in North America. Dip molding and dip coating involve submerging a mold or a substrate in a bath of heated plastic and allowing it to cool. Dip molding creates products or parts with hollow interiors while dip-coating forms a plastic coating over the substrate to add protection, functionality, and aesthetics.
MDI, led by CEO Jack Slinger, was founded in 1963 and is headquartered in Tempe, Arizona with 13 facilities across the United States (11), Canada and Mexico.
“MDI’s intent behind the acquisition of Seitz is to expand our ability to provide complex, tight tolerance molded products and assemblies to the medical and specialty industrial markets, and to grow our footprint in the northeast United States and China,” said Mr. Slinger.
PNC Mezzanine first invested senior subordinated debt and preferred stock in MDI in December 2015 to finance the company’s acquisition of New York-based Bates Industries and California-based Compass Product Design.
In addition to the buy of Seitz, other add-ons completed by MDI since 2015 include Ontario-based Phoenix Manufacturing (2021), New Hampshire-based Medefab (2020), Ohio-based Formco (2018), Ohio-based Diptech (2018), and Mexico-based Hamar/GIC (2017).
“We are excited to partner with MDI on another add-on acquisition and are confident in the company’s ability to continue executing on their growth strategy,” said Doug Brosius, a partner at PNC Mezzanine. “With this acquisition, MDI will enhance its position in the medical market space while expanding into new custom molding applications, like precision gear assemblies, both in the United States and Asia.”
Pittsburgh-based PNC Mezzanine invests up to $50 million in subordinated debt and equity in companies that have revenues greater than $20 million and EBITDA greater than $4 million. Sectors of interest include niche manufacturing, value-added distribution, business services, and consumer services. PNC Mezzanine, a subsidiary of publicly traded PNC Financial Services Group (NYSE: PNC), was founded in 1989 and has made 190 investments in 98 portfolio companies to support of 361 transactions.
© 2021 Private Equity Professional | November 19, 2021