Core Molding Technologies, Inc. (NYSE American: CMT) has acquired substantially all of the assets of Horizon Plastics International Inc. (HPI) for approximately US $63 million in cash.
Founded in 1972, Cobourg, Ontario based Horizon Plastics is a custom low-pressure structural plastic molder, which utilizes both structural foam and structural web process technologies, with approximately 250 employees operating within two manufacturing facilities located in Cobourg, and Nuevo Leon, Mexico.
HPI had annual sales for its fiscal year ended August 31, 2017 of approximately $60 million.
“Continuing to expand our technology offerings and diversifying our customer base and end-markets are key elements of our growth strategy,” said Kevin L. Barnett, President and Chief Executive Officer of Core Molding Technologies. “HPI is a leader in structural foam and structural web molding and continues to innovate around these molding technologies,” he said. “In addition to new technology offerings, the acquisition brings us existing programs with industry leading customers in several new markets, experienced leadership, a motivated and capable workforce, and expanded geographic reach. We intend to utilize this significant knowledge base and capabilities resident in both facilities to continue to grow the HPI operations.”
“As I looked to transition ownership of HPI, it was important to find the right partner,” said Brian Read, CEO and owner of HPI. “As a long-term Cobourg resident and business owner, future stability of the organization and support of our outstanding technical and production teams was a high priority. I also favored a strategic partner with the scale and technology foundation to continue growing these specialized processes into expanded applications,” he said. “Core Molding Technologies is that partner.”
Structural foam and structural web are low-pressure injection molding processes. Because the processes are conducted at low-pressure, parts can be larger, more structurally sound, and have less internal stress than parts made using high-pressure. HPI’s low-pressure injection molding processes use nitrogen gas with melted polymer to reduce the part weight by 20% to 30% or more compared to traditional injection molding processes. Structural foam and structural web represent niche-manufacturing processes in the injection molding industry with only a limited number of companies focused on these technologies. HPI is well positioned within the industry as all of its business and resources are dedicated to the structural foam and structural web technology.
“We are excited about adding the structural foam and structural web technologies to our growing portfolio of processes, and to advancing the opportunities the HPI team has under development,” Barnett said. “Additionally, we see opportunities to offer the structural foam and structural web technology to our existing customers and to cross-sell our current processes to HPI’s customers,” he said.
KeyBanc Capital Markets acted as exclusive financial advisor to Core Molding and STS Capital Partners acted as exclusive financial advisor to HPI.
Columbus, Ohio based Core Molding Technologies is a manufacturer of sheet molding compound (SMC) and molder of fiberglass reinforced thermoset and thermoplastic materials. Core specializes in large-format moldings and offers a wide range of fiberglass processes, including compression molding of SMC, glass mat thermoplastics (GMT) and bulk molding compounds (BMC); compression and transfer molding of direct long-fiber thermoplastics (D-LFT); spray-up, lay-up, resin transfer (RTM) and vacuum resin transfer molding (V-RTM).
photo credit: Horizon Plastics International
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