Yakima, Washington-based Amtech Corp, a plastics components maker that is backed by Blackford Capital, has merged with Hanover, Pennsylvania-based McClarin Plastics Inc, another plastics components maker. The new company will be called McClarin Plastics LLC and be located in Hanover. No financial terms were disclosed. MB Financial Bank and Patriot Capital provided financing for the deal.
GRAND RAPIDS, Mich., March 31, 2015 /PRNewswire/ — Amtech Corporation, an industry-leading manufacturer of fiber-reinforced plastic components based in Yakima, Wash., today announced it has merged with Hanover, Pa.-based McClarin Plastics, Inc. Amtech is a portfolio company of Grand Rapids, Mich.-based Blackford Capital. The new company, McClarin Plastics, LLC, will be headquartered in Hanover.
The merger with McClarin, a 61-year-old designer and manufacturer of thermoformed and fiberglass reinforced plastic components, provides Amtech new manufacturing processes, a strategic east coast location, and access to a new set of blue-chip customers. Management teams from both companies will remain in place with Todd Kennedy, current CEO of McClarin, and Doug Christie, current CEO of Amtech, serving as co-CEOs.
“McClarin has an excellent reputation for dependable service and reliability, as well as a broad range of proprietary compound formulations,” said Christie, who has led Amtech’s growth since Blackford acquired the company. “This merger will make McClarin Plastics, LLC a national provider with facilities within one-to-two days shipping for 80-90 percent of the market. Our six major production processes will address roughly 45 percent of the $35 billion U.S. composites industry and our best-in-class engineering will be able to meet the needs of customers across diverse end markets.”
Kennedy added, “Customers have been overwhelmingly positive about the merger and clearly see the enhanced value that we will be able to provide to the market. We possess substantial strengths including engineering excellence, complex supply chain management, quality systems that meet rigorous OEM standards, and best-in-class operational platforms that utilize technology-driven solutions. These strengths will further drive performance and value for our customers.”
Blackford acquired Amtech in 2008, and has grown the company’s revenue from an initial $9 million to $38 million, prior to the merger with McClarin. Blackford facilitated two previous acquisitions for Amtech, and implemented operational initiatives that have driven 28 percent average annual revenue growth.
“Amtech has had an amazing trajectory over the six years since we acquired them,” said Martin Stein, founder and managing partner of Blackford. “We attribute a great deal of that success to our investment in engineering, geographic diversification and strengthening of our sales infrastructure. The merger with McClarin ticks each of these boxes and further positions us to become one of the leading players in the composites market.”
Blackford, in line with its commitment to support its management teams and the expansion of its businesses, has named 11 people to the McClarin Plastics, LLC board of directors:
Martin Stein, Blackford Capital
Chuck Bennett, Dixie Chemical
Phillip Ashkettle, RESPolyflow, LLC
Michael Clifford, McClarin Plastics
Todd Kennedy, McClarin Plastics
Larry Miller, Crystal Associates, LLC
Steven Schomer, Valeo, Inc.
Greg Stone, Blackford Capital
Estella Vallejo, O’Brien Enterprises
Jim Zawacki, GR Spring & Stamping
Shirish Pareek, Hydraulex Global
MB Financial Bank and Patriot Capital provided financing for the transaction. Over the next few years, the merger is expected to create more than 150 new jobs, spread between Yakima, Hanover, and a manufacturing plant in Elmore, Ala.
About Blackford Capital
Blackford Capital is a private equity firm based in Grand Rapids, Mich., that acquires, manages and builds middle-market manufacturing, distribution and service companies, with seven portfolio companies across the country. The firm has offices in Grand Rapids (headquarters) and Santa Monica, CA. Blackford reviewed roughly 3,400 transactions in 2013, and has closed 27 transactions in the past seven years. The firm’s investment criteria includes mature, profitable businesses with revenues between $20 million and $100 million, with management teams that are either willing to remain with the company or are seeking to retire. For more information, visit www.blackfordcapital.com.
Established in 1987, Amtech is a diverse manufacturer of composite-based products and parts. With expertise in design, engineering, and research and development, Amtech’s products are distributed in both military and commercial markets. Amtech manufactures fiberglass, resin transfer molding (RTM), vacuum assist RTM (VARTM), large and small vacuum-form plastics capabilities, finishing, value-added assembly, and custom packaging. Amtech is owned by Blackford Capital, a private equity firm based in Grand Rapids, Mich. For more information, visit www.amtechcorp.com.
About McClarin Plastics
Founded in 1953, McClarin Plastics, Inc. is a premier contract manufacturer of large thermoformed plastic and fiberglass reinforced plastic components including ABS, polycarbonate, PETG, Styrene, TPO and PC/ABS and polyethylene components for industrial equipment, construction, rail, transportation, agricultural and medical applications. The company also offers open, cold, or multi-cavity molding options for fiberglass reinforced plastic molding and fabrication, providing production throughout North America with international exports to Asia and Europe. For more information, visit www.mcclarinplastics.com.