TruArc Partners has acquired Molded Devices, a maker of complex plastic and rubber components used in medical devices, and aerospace, industrial, and energy production applications.
TruArc acquired Molded Devices from its founder Brian Anderson and PNC Mezzanine Capital. PNC Mezzanine invested senior subordinated debt and preferred stock in Molded Devices in 2015 to finance a series of add-on acquisitions.
Today, Molded Devices manufacturing capabilities include injection molding, tube extrusion, blow molding, dip molding and coating, and clean room assembly for medical device production. The company also provides product design, development, and engineering support services.
According to Molded Devices, 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.
Molded Devices, led by CEO Jack Slinger, is headquartered in Tempe, Arizona with 15 production facilities across the United States (12), Canada, Mexico and China.
A recent added-on acquisition by Molded Devices was the November 2021 buy of Seitz, a Connecticut-based provider of plastic injection molding and assembly services. In addition to the buy of Seitz, other add-ons completed by Molded Devices since PNC’s investment in 2015 include Ontario-based Phoenix Manufacturing (2021), New Hampshire-based Medefab (2020), Ohio-based Formco (2018), Ohio-based Diptech (2018), Mexico-based Hamar/GIC (2017), New York-based Bates Industries (2015) and California-based Compass Product Design (2015). In total, Molded Devices has completed 15 add-on acquisitions since its founding in 1963.
“We have built a phenomenal business and today operate with more scale than ever. In this next chapter of growth, we hope to further broaden our set of manufacturing and value-added capabilities and become a market leader in servicing medical OEMs,” said Mr. Slinger. “We look forward to working with the TruArc team to leverage their experience in specialty manufacturing, sales and marketing, and other strategic areas to achieve this goal.”
Post-closing, Mr. Slinger will continue as CEO and Molded Devices founder Brian Anderson will remain as a member of the board of directors. Further, Gregg Tobin, an advisor to TruArc, will join the company as its executive chairman, and Jay Twombly, an operating partner at TruArc, will also join the company’s board of directors.
“Within our specialty manufacturing strategy, we have been looking for opportunities with significant exposure to the growing healthcare market,” said John Pless, a co-managing partner at TruArc. “We believe Molded Devices, with its unique capabilities and robust customer relationships, is well-positioned to continue the momentum it has across the business, with a focus on deepening its capabilities across the medical market.”
New York City-headquartered TruArc invests from $50 million to $150 million in companies with enterprise values from $100 million to $500 million and EBITDA from $10 million to $50 million. Sectors of interest include specialty manufacturing and business services.
TruArc was founded in 2021 as the successor firm to Snow Phipps Group (founded in 2005 by Ian Snow and Ogden Phipps) and TruArc continues to manage Snow Phipps portfolio companies while actively seeking new platforms. TruArc is led by its co-managing partners Alan Mantel, Ogden Phipps II, and John Pless. Since 2005, including Snow Phipps’ transactions, TruArc has made over $2 billion in investments across 20 platforms and 40 add-on acquisitions.
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 199 investments in 105 portfolio companies to support of 385 transactions.
William Blair was the financial advisor to TruArc, and Piper Sandler was the financial advisor to Molded Devices.
© 2022 Private Equity Professional | August 11, 2022