Processing technologies in the protective case industry combine in the acquisition of rotational molder Hardigg Industries (South Deerfield, MA) by injection molder Pelican Products Inc. (Los Angeles, CA). Pelican CEO Lyndon Faulkner told MPW that by nature of the company’s respective processes—low-volume large-part rotational molding and high-volume smaller-part injection molding—there was very little overlap between their clients. Faulkner estimated that two-thirds of Hardigg’s business comes from the military, while Pelican generated two-thirds of its revenue in the industrial and safety markets.
Private equity group Behrman Capital, which acquired Pelican in 2004, provided financing for the deal that was valued at approximately $200 million. In addition to resetting a credit line with GE Capital, Pelican took out a new line with GSO Capital. The companies say the result is the union of the largest injection molder and rotomolders of protective cases, for a new business with more than 1500 employees, 22 offices in 12 countries, and six manufacturing locations spread between Europe and North America. Faulkner says the goal is to grow both companies to combined annual revenue of $500 million.
Hardigg, which was founded in 1954 by James S. Hardigg, supplies high-end air- and water-tight cases for the military, consumers, public safety officers, the industrial sector, and other professionals. The company also launched a line of injection molded cases under the Storm Case brand. Pelican says it will retain the Hardigg name on its cases, exploiting the product’s brand standing. The company has manufacturing in South Deerfield, MA, as well as outside Indianapolis. Pelican’s global manufacturing base is in Torrance, CA, where the company operates almost 50 injection molding machines, ranging up to 2000 tons in clamp force.
Jamie Hardigg, chairman of Hardigg Industries, will cease day-to-day management responsibilities but serve as a member of the Pelican’s board. John Padian will continue to manage the Pelican organization as COO of Pelican Products, with Bill Hamer retained as COO of Hardigg Industries. Both report to Faulkner, president and CEO of the Pelican Corp.—[email protected]