Citadel Plastics, a portfolio company of Wind Point Partners, has acquired Bulk Molding Compounds Inc., a producer of thermoset bulk molding compounds with around $110 million in annual revenue. No pricing terms were disclosed. Leveraged financing was provided by Dymas Capital, JPMorgan Chase, MCG Capital Corp. and PNC Mezzanine Capital.
Wind Point Partners, a Chicago-based private equity investment firm, today announced that Citadel Plastics, a portfolio company, has completed the sizable acquisition of Bulk Molding Compounds, Inc.
Wind Point invested in Citadel in concert with its first acquisition, The Matrixx Group, in March 2007. Consistent with Wind Point's strategy of partnering with a top caliber CEO, Wind Point partnered with Mike Fitzpatrick, who leads Citadel as Chairman and CEO. Previously, Mike had a 30-year career with Rohm and Haas Company, an $8 billion public company, most recently serving as President and COO.
Citadel is building a global plastics compounding company with broad product and technology capabilities by acquiring strong companies with proven records of success in the molded materials markets. With the acquisition of BMCI, Citadel has distinguished itself as the only firm in the world to deliver both thermoplastic and polyester thermoset (BMC) composites.
BMCI, with annual revenue of approximately $110 million, is the world's leading producer of thermoset bulk molding compounds and serves the automotive, electrical, consumer appliance, power tool and conductive plastic industries. BMCI has two manufacturing sites in the
Mike Fitzpatrick, Chairman and CEO of Citadel, commented, “BMCI is an excellent fit with our first acquisition, The Matrixx Group, which is a market leader in thermoplastic compounding in the US and Italy. BMCI brings global reach, excellent technology, strong customer relationships, and an experienced management team to the group. We are excited about the opportunities we can offer our customers as we help them resolve their product and materials needs.”
Paul Peterson, a principal at Wind Point Partners, said “Mike has an impressive track record of creating value by integrating acquisitions and leading much larger enterprises. Mike is building a high caliber team at Citadel and we are confident in their ability to execute upon Citadel's exciting international organic and acquisition growth opportunities.”
Legal counsel on this transaction was provided by Reed Smith LLP. Debt financing on the transaction was provided by Dymas Capital Management Company, LLC as Lead Arranger and Second Lien Agent, JPMorgan Chase Bank N.A. as First Lien Agent, and MCG Capital Corporation (NASDAQ: MCGC) and PNC Mezzanine Capital as Senior Subordinated Lenders.
About Wind Point Partners
Wind Point Partners is a private equity investment firm with $2 billion of capital under management. Wind Point focuses on partnering with top caliber management teams to acquire solid middle market businesses with a clear path to value creation. Additional information about Wind Point is available at www.windpointpartners.com.
About Citadel Plastics Holdings
Wind Point Partners is the majority owner of Citadel, which itself owns 100% of the Matrixx Group and BMCI. Citadel is responsible for the design and execution of a value creation strategy in the plastics compounding market.
The world's leading producer of thermoset bulk molding compounds, BMCI serves the automotive, electrical, consumer appliance, power tool and conductive plastic industries. A proven metal replacement, BMCI's products are especially well suited for structural applications where heat and mechanical load are relevant. BMCI has two manufacturing sites in the
About The Matrixx Group
Founded in 1985, The Matrixx Group is a leading independent compounder of thermoplastic resins serving the power tool, lawn and garden, appliance, automotive, HVAC, electronics and construction markets. The Matrixx Group's product portfolio features compounded grades of nylon, ABS, polycarbonate, PBT, PET, polypropylene, polyethylene and engineering resin alloys. The Matrixx Group is headquartered in