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NN Inc. furthers diversification goals with acquisition of Precision Engineered Products

NN Inc. (Johnson City, TN), a diversified industrial manufacturing company that operates 43 facilities in North America, Europe, South America and China, is on an acquisition/expansion roll. On Oct. 29, the company announced the opening of a precision ball bearing plant in Ciudad Juarez, Mexico, in response to increasing demand and growth in auto manufacturing. The plant, which has been under construction since June of this year, is expected to commence production this month, and will be co-located with NN's existing precision metal components plant in Juarez.

Clare Goldsberry

November 4, 2015

2 Min Read
NN Inc. furthers diversification goals with acquisition of Precision Engineered Products

NN Inc. (Johnson City, TN), a diversified industrial manufacturing company that operates 43 facilities in North America, Europe, South America and China, is on an acquisition/expansion roll. On Oct. 29, the company announced the opening of a precision ball bearing plant in Ciudad Juarez, Mexico, in response to increasing demand and growth in auto manufacturing. The plant, which has been under construction since June of this year, is expected to commence production this month, and will be co-located with NN's existing precision metal components plant in Juarez. It will share management, supply chain and administrative services.

Caprockrobot350.jpgThat is just the latest chapter in the company's growth narrative. On Oct. 20, NN successfully completed its acquisition of Precision Engineered Products Holdings Inc. (PEP), a global manufacturer of precision custom solutions, including injection molding and assembly, serving the medical, electrical, transportation and aerospace markets. PEP was acquired from The Resolute Fund II LP, a private equity fund managed by The Jordan Company II LP, and Nautic Partners IV LP, which had acquired PEP in 2010. According to information obtained from PEP's website, it has 13 facilities throughout the United States, Mexico, China and the Dominican Republic and employs 1300 people.

"The acquisition of PEP, the largest in NN's 35-year history, is a transformational milestone that expands our market segment reach, broadens our portfolio of products, services, and solutions as well as expands margins and strengthens our global geographic footprint," said Richard Holder, President and CEO. "PEP adds proven capabilities in medical, electrical, transportation and aerospace to NN's strengths in light auto, CAFÉ technologies, general industrial, commercial transportation and fluid power. These complementary technologies further accelerate NN's growth as a diversified industrial focused on delivering a complete portfolio of world-class products and solutions to our customers and being a consistent earner through the economic cycle," added Holder.

Prior to the PEP acquisition, NN Inc. purchased another plastics company, Caprock Manfuacturing Inc. and Caprock Enclosures LLC, privately held custom injection molding and assembly companies based in Lubbock, TX. The May 29, 2015, acquisition was NN's fifth in the previous 15 months. Caprock operates 22 injection molding presses, each equipped with robotic automation to improve throughput and repeatability. The company also has in-house moldmaking capabilities, and had recently added new UV cured inkjet printers to offer top-of-the-line, printing on plastics, according to Caprock's website.

Caprock also offers six-axis Fanuc robotics to enable the company's assembly team to perform accurate, repeatable assembly operations and performs EMI/RFI shielding to allow lower cost plastics to be used in critical electronics applications. The company has developed a strong presence in the oil and gas, aerospace and aviation markets.

"The [Caprock] acquisition provides further balancing of our end markets and takes us one step closer to executing our strategic plan," commented Holder, adding that it "represents the first step in our focused plan toward transforming our plastics business."

About the Author(s)

Clare Goldsberry

Until she retired in September 2021, Clare Goldsberry reported on the plastics industry for more than 30 years. In addition to the 10,000+ articles she has written, by her own estimation, she is the author of several books, including The Business of Injection Molding: How to succeed as a custom molder and Purchasing Injection Molds: A buyers guide. Goldsberry is a member of the Plastics Pioneers Association. She reflected on her long career in "Time to Say Good-Bye."

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