ROUNDTABLE: The M&A market ended 2019 in good shape and professionals who work in the field expect dealmaking to remain strong in the new year.
Mergers and acquisitions activity among plastics manufacturers has been uneven as the supply of assets shrinks, demand grows and threats to the economy build.
HOLLAND — Acquiring the assets of a Charlotte-based plastics molder gave Clarion Technologies Inc. a broader customer base, added manufacturing capacity and the ability to move production closer to clients. The Holland-based Clarion Technologies acquired certain assets and a book of business from CNI Plastics LLC of Charlotte. Clarion Technologies redeployed the production equipment acquired in the deal to its facilities in Greenville, Mich., Anderson, S.C., and Garland, Texas.
Professionals expect a vibrant M&A market and strong deal flow this year amid easing U.S. economic growth and rising interest rates.
An already strong M&A market could get even more competitive in 2019, driven by a good U.S. economy and plenty of available capital.
ACME — Amid a period of technological upheaval in the automotive industry, West Michigan-based supplier Mann + Hummel USA Inc. is reducing project costs and saving time by partnering, collaborating or aligning with larger OEMs.
Here is the MiBiz Growth Report for Jan. 22, 2018:
• M&A: Bridgman-based Kruger Plastic Products has been acquired by Chicago-based private equity firm HC Private Investments, according to a statement. Kruger President Pat Brandstatter and VP of Engineering Dirk Kruger retained “significant stakes” in the custom injection molding company. Terms of the deal were not disclosed. Grand Rapids-based Varnum LLP served as legal counsel to Kruger, which was advised on the transaction by BlueWater Partners LLC, a Grand Rapids-based investment banking and consulting firm.
Next year should usher in an even stronger M&A market across the U.S. than in 2017, with more deals occurring in the middle market and involving privately-owned companies.