Monomoy Capital Partners has acquired L&P Plastics LLC from Leggett & Platt Inc. (NYSE: LEG), for an undisclosed amount. L&P Plastics makes custom plastic components for the power tool, medical device, furniture and automotive industries. It has more than 400 employees and four facilities. Lazard Middle Market advised Leggett & Platt on the sale.
Monomoy Capital Partners, L.P., a New York private equity fund that makes controlling investments in middle market companies, announced today that it has acquired the equity and operations of L&P Plastics, LLC from Leggett & Platt, Inc. (NYSE: LEG). Terms of the transaction were not disclosed.
L&P Plastics, a non-core operating division of Leggett & Platt, is an industry leader in the design, engineering and manufacturing of custom plastic components for the power tool, medical device, furniture and automotive industries. With more than 400 employees, the company operates facilities in Carlyle, Illinois, Popular Bluff, Missouri, Booneville, Mississippi and Brownsville, Texas and provides a full range of tooling, molding and assembly services, including injection molding, gas-assisted molding, insert molding and structural form molding.
“We are excited about our acquisition of L&P Plastics,” said Mayank Singh, a Monomoy Vice President. “L&P Plastics is a strong operating division of a premiere manufacturer with terrific managers and a blue chip customer list. We look forward to working with the current management team to transform the business into a standalone company and a platform for further acquisitions in the plastic molding sector.”
L&P Plastics’ larger customers include Briggs & Stratton, GE Medical, Caterpillar, Humanscale, Leggett & Platt and Key Safety Systems. The company will be part of a growing Monomoy manufacturing portfolio that includes Compass Automotive Group, Inc, the largest manufacturer of safety-critical auto parts, The Anchor Hocking Company, the leading manufacturer of retail glassware in North America and Kurz-Kasch, Inc., the worldwide leader in electromagnetic stators for heavy duty diesel engines.
The L&P Plastics transaction marks the fourth Monomoy acquisition in the past four months, joining Carlton Creek Ironworks (an iron foundry acquired in July), the Boston Apparel Group (a catalog and internet retailer of women’s clothing acquired in August) and Katun Corp. (an imaging supply company acquired in early September).
“In the current economic crisis, Monomoy’s ability to close difficult transactions and manage business challenges has never been more important or more useful,” said Stephen Presser, a Monomoy partner. “We continue to review a wide range of compelling investment opportunities across the middle market and we will continue to acquire fundamentally sound businesses that we can value and improve.”
Richard Porter and Paul Fondahn of Kirkland & Ellis represented Monomoy in L&P Plastics transaction. Crowe, Chizek and Freed Maxick provided Monomoy with accounting and financial advice.
Lazard Middle Market acted as financial advisor to Leggett & Platt in the transaction.
About Monomoy Capital Partners, L.P.
Monomoy Capital Partners, L.P. is a $280 million private equity fund that makes controlling investments in middle market companies. The Fund has completed 18 transactions in just over two years in the smaller end of the middle market and currently owns 12 business that collectively employ more than 8,000 people. Monomoy implements customized business improvement programs in all portfolio companies that reduce operating expenses, increase profitability and encourage meaningful growth. For additional information on Monomoy and its portfolio companies, please visit www.mcpfunds.com.