Custom injection molder Mountain Molding LLC has been acquired by Wichita, KS private equity firm Arcady Capital Company, providing the company capital to grow as one of the original partners looks to cash out his initial investment.
Don Cheyne, Mountain Molding president, will stay on as an owner, along with Arcady, telling PlasticsToday that the deal was a good one for him, his former partner, and Arcady.
|Don Cheyne, president of Mountain Molding LLC (Longmont, CO).|
"My partner retired quite a number of years ago and wanted to fully exit the business," Cheyne said, noting that his partner hadn't been involved in the day-to-day operations of Mountain Molding for nearly 20 years. Cheyne said Arcady's investment will not only replace his former partner's capital, but also allow Mountain Molding to continue expanding. "It's a good match," Cheyne said. "[Arcady] was looking for someone, and [Mountain Molding] was looking for someone."
Arcady Capital Investments I, L.P., in partnership with management, provided the equity capital, while Enterprise Bank & Trust provided the senior debt financing and Fortitude Capital LLC led the subordinated debt financing.
Mountain Molding LLC (Longmont, CO), was founded in 1976 and currently occupies two buildings covering upwards of 50,000 sq ft, according to Cheyne. Total employees range from 60 to 100, depending on the level of contract assembly work going on. Cheyne told PlasticsToday that Mountain Molding operates injection molding machines ranging in clamp force from 28 to more than 400 tons, including some vertical machines for insert molding.
Cheyne said medical sales comprise more than half of the company's business, with the remainder falling into diverse end markets, including computer peripherals, industrial, consumer, pet care, and security. In addition to contract assembly work and experience in elastomerics, Mountain Molding also offers insert molding to customers.
"Business has been good," Cheyne said. "We've seen steady growth over the last five years and expect it to continue in 2013."