AEA Closes Seventh Pexco Add-On

AEA Closes Seventh Pexco Add-On

Pexco, a specialty plastics extruder and a portfolio company of AEA Investors, has acquired Exlon Extrusion.

Exlon is an extruder of plastic tubing with a specialization in high-performance polymer products including custom and proprietary lines of nylon, polyurethane, polypropylene and polyethylene pneumatic tubing and recoil hose products. The company’s customers are active in the telecommunications, pneumatics, textiles, and automotive industries. Exlon was founded in 1984 by Dennis Swink and is headquartered in Greensboro, North Carolina.

Pexco is a designer and fabricator of custom extruded plastics products. The company provides standard and specialty parts and components to manufacturers and end-users across a range of applications in the specialty industrial, lighting, traffic safety, fence, filtration, and electrical insulation industries.

Pexco, led by CEO Sam Patel, is headquartered in Atlanta with multiple plants across the United States and Mexico.

“The acquisition of Exlon further expands our capabilities and technical expertise in the world of high-performance polymers,” said Mr. Patel. “The addition of Exlon’s personnel, equipment and relationships will provide valuable resources as we continue to demonstrate our proficiency with products that require higher-grade raw materials for niche applications.”

Pexco was acquired in January 2018 by AEA as part of the firm’s acquisition of Spectrum Plastics Group from Kohlberg & Company. The buy of Exlon is the seventh add-acquisition completed by AEA for Pexco and, according to the company, it is now the largest custom industrial extrusion company in North America.

The most recent add-on for Pexco was the January 2020 buy of NDM Marking Systems, a Georgia-based maker of extruded traffic delineator posts used by transportation authorities, utility companies and contractors. The five earlier add-ons were Pennsylvania-based HPE Extrusion Solutions (August 2019); North Carolina-based sister companies American Extruded Plastics and American Injection Molding (July 2019); Massachusetts-based Custom Extrusion (August 2018); and Massachusetts-based Insultab (December 2018).

“We remain committed to pursuing investments that broaden our capabilities and enable us to offer a comprehensive suite of products for a wide variety of end-market applications,” added Mr. Patel.

AEA invests across three sectors – value-added industrials, consumer, and services – and has 70 investment professionals at its headquarters in New York City with additional offices in Connecticut, London, Munich, and Shanghai. AEA was founded in 1968 by the Rockefeller, Mellon, and Harriman family interests and S.G. Warburg & Co.

In December 2019, AEA finalized two new funds with the hard cap close of its seventh flagship fund, AEA Investors Fund VII LP, with total equity commitments of $4.8 billion, and its fourth small business fund, AEA Investors SBF IV LP, with total equity commitments of $877 million.

Private Equity Professional | June 2, 2020

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