GI Plastek (Wolfeboro, NH) has merged with Precision Southeast Inc. (Myrtle Beach, SC) to create PSI Molded Plastics Inc. Citizens Bank’s Commercial Banking unit is providing $23 million in credit to help fund the merger.
The transaction facilitates the merger of two Gladstone Investment Corp. portfolio companies to establish a custom injection molding company with facilities in New Hampshire, South Carolina and Indiana that offer a comprehensive range of plastic injection molding capabilities. The credit agreement was used to pay off existing debt and to consolidate the debt capital in the resulting consolidated entity.
In August 2009, Wincove Capital acquired GI Plastek. Six years later, Gladstone Investment Corp. acquired Wincove-GIP Acquisition Inc. (d.b.a. GI Plastek) from Wincove Capital.
GI Plastek is a manufacturer of custom injection molded products using structural foam, gas assist and straight injection molding. It also offers value-added assembly and secondary finishing operations, including painting, inserting and decorating. The company’s press sizes run from 220 to 1,574 tons. In 2016, GI Plastek added two new large tonnage machines with an 1,100- and 500-ton clamping force and installed a new multi-booth mechanized paint line for a total investment of $2 million, according to the company’s website.
Precision Southeast Inc., which also has a facility in Indiana, specializes in custom injection molding along with several engineering services, including metal-to-plastic conversions, rapid prototyping and tooling. The company’s press sizes range from 20 to 600 tons. Precision offers overmolding and in-mold assembly and a range of value-add services, such as assembly, ultrasonic welding, leak testing and decorating that includes pad printing and hot stamping.