Ipeg Inc. (Cranberry Township, PA), with subsidiaries serving the plastics-processing, waste-recycling, and industrial heat-transfer markets, has acquired Pelletron Corp., a supplier of pneumatic conveying systems, dust removal systems and other related products. The company will operate as an independent subsidiary at its existing location in Lancaster, PA. Financial terms were not disclosed.
Left to right in front: Chris Keller, Ipeg CEO and Heinz Schneider, Pelletron President; in back: Kirk Winstead, Ipeg COO, John Erkert, Ipeg CFO and Paul Wagner, Pelletron Vice President.
Ipeg is parent to Conair, a global manufacturer of auxiliary equipment for plastics processing, which also designs and sells material conveying systems. However, Ipeg CEO Chris Keller says the two companies are not competitors. “Whereas Conair offers vacuum-based systems that might convey hundreds or thousands of pounds per hour, Pelletron offers pressure-driven systems that are used by resin producers to handle thousands and tens of thousands of pounds per hour. There is virtually no overlap,” Keller explained.
Founded in 1987, Pelletron has been operated by Heinz Schneider and Paul Wagner since 2003. They acquired ownership of the company in 2008. Schneider and Wagner will retain their current roles of President and Vice President, respectively. All other employees are also expected to remain with the company. Keller says the company will continue to operate from its present location in Lancaster, PA, about 80 miles west of Philadelphia.
Pelletron focuses on design and engineering, with numerous patents for products such as pellecon3, a new smart and economical conveying process, DeDuster systems to remove dust and streamers from conveyed materials, and the Pellbow, a patented elbow for conveying piping that prevents pellet damage and equipment wear in high-velocity conveying and abrasive material applications.
“There is potential for Conair to source some equipment from Pelletron and vice versa,” said Keller. “However, our primary focus is to help Pelletron grow doing what it does best: Engineering high-throughput pneumatic conveying systems. Part of our growth strategy is to acquire solid companies, give them autonomy and invest in their growth. This is no different.”
Ipeg ownership will give Pelletron the financial strength to handle large projects that can run into the millions of dollars. “Our growth has been limited by our size, not by our know-how or capability” explains Schneider. “With the strong financial backing and global footprint of Ipeg, which is much larger than Pelletron, our customers will be able to have more confidence in our ability to handle these larger projects.”
Pelletron has a European subsidiary, pelletroneurope GmbH, located in Bodnegg, Germany, and distributors and partners around the world.
Ipeg comprises a family of leading brands serving the global plastics-processing, waste-recycling, and industrial heat-transfer markets. In addition to Conair, Ipeg brands include Thermal Care, a manufacturer of process cooling solutions for industrial applications worldwide; Republic Machine, focused on the design and manufacture of single-shaft shredders for recycling of plastics and other materials; and now Pelletron Corp.