MCM Capital Partners is actively seeking investments in processors or mold makers utilizing engineered or high performance thermoplastic resins.
The following are reasons why we are interested in the thermoplastics market, our experience and value-add, and characteristics of attractive thermoplastic companies for investment.
Favorable Thermoplastic Industry Trends & Characteristics
- Aerospace and Defense, Oil and Gas, Automotive, and Medical markets are transitioning from metal to plastic based products due to lighter weight, higher strength, resistance to corrosion, and component savings.
- B2B manufacturers of high temperature plastic OEM components and products serving the Aerospace, Medical, Biopharma, Semiconductor, and Laboratory Supplies industries are attractive due to the long-term growth potential.
- Industry technology is advancing quickly and capabilities to create more complex shapes are becoming increasingly available and more affordable.
- The complex nature of both the raw materials utilized and components produced typically commands higher margins. The technical understanding to produce those parts creates a high barrier to entry.
- The industry is fragmented with many relatively small manufacturers allowing for a “buy and build” investment strategy.
MCM’s Thermoplastic Experience
- Performance Plastics – Acquired in 2015, www.performanceplastics.com, is a niche, technical custom injection molder focused on demanding jobs utilizing ultra and high performance plastics such as PEEK, Torlon, PTFE, Ultem, PFA and others. It serves the Life Science, Military, Aerospace & Defense, and Energy markets.
- RMB Products – Acquired in 2010, www.rmbproducts.com, is a rotational molder, rotational liner, and laser sinterer of engineered thermoplastic products for niche applications serving the Biopharma, Semiconductor, Aerospace, and Chemical Processing markets.
- Dexmet – Divested in 2011, www.dexmet.com, manufactures precision expanded metals, foils and thermoplastics with exacting mechanical and electrical properties to meet very tight conductivity, weight and dimensional tolerances.
- MCM Senior Operating Partner Mr. Harry Shimp was at General Electric’s High Temperature Materials Division for 10 years and has operated a number of companies in the fields of engineered ceramics, reinforced thermoplastic composites, precision optics, aerospace repair & overhaul, precision instruments, and photovoltaics. Click here for bio
- MCM Board Advisor, Mr. William Carson, Jr. is President of Cutting Dynamics, a company manufacturing highly engineered metals and composites, including a thermoplastic composite production facility. He grew the company from 3 employees in 1985 to over 140 employees today. He helps review potential investment opportunities, makes introductions to new customers, and serves on select portfolio company boards. Click here for bio
- MCM professionals attend Plastics and Engineered Materials tradeshows including NPE, MD&M, MAPP, CAMX, and SAMPE across the United States since 2010 to further our industry knowledge.
- MCM has relationships with plastics executives who may act as an integral member of future plastics portfolio companies.
Seeking Thermoplastic companies with the following characteristics:
- Sales $15-$75 million and/or EBITDA $2-$8 million
- Gross Margins: Manufacturers +35% or Value-Added Distributors +25%
- Cleanroom, ISO 13485, AS 9100, ISO 16949, or ITAR certifications are attractive
- Headquartered in the United States
- Prefer companies utilizing non-commodity resins, including but not limited to:
- Ultra-Performance: Imide, PI, PBI, PAI, Vespel
- High-Performance: FEP, PEEK, PEI, PPSU, PSU, PVDF, PES, PET, ETFE, PTFE, ECTFE, PCTFE, PFA, Ultem
- Engineered: PC, PPO, TPU, PMMA, Nylon, POM, PET, PBT
Business Owner Testimonial
“The MCM team, while careful not to dismantle the principals and practices that made our company successful, gradually instilled the business development culture required to reignite and sustain our growth potential, a culture we are true to three years after their exit.”
Bob Bochman, CEO, Dexmet
“MCM tends to hold their companies longer than most PE firms, and they have been extremely supportive of my efforts to build a top tier team – commercial, engineering and operations. They have invested heavily in new equipment and facility improvements that are critical to taking RMB to the next level.”
Craig Jack, CEO, RMB Products