3i makes second US growth capital investment(2)

The UK-listed private equity group has made a growth capital investment in a Canadian plastic manufacturer – its second North American deal since opening a US office last year.

The growth capital arm of 3i, a London-quoted private equity group, has bought a minority stake in Canadian plastic business Mold-Masters.

The deal is the second investment for 3i’s US growth capital team, following a $57 million (€41 million) investment in US hedge fund administrator Fulcrum in June.

Mold-Masters manufactures hot runner systems for the plastic injection moulding industry. Headquartered in Canada, it has offices around the globe, plus manufacturing facilities in Germany, China, Japan, the US, Canada and Brazil.

The founders of Mold-Masters, Jobst and Waltraud Gellert, together with the management team, own the majority of the business.

Hamdi Conger, who has previously been chairman of several of 3i’s other portfolio companies, including Hyva, NORMA Group and AES Seal, will become chairman of the business. Jonathon Fischer will remain as chief executive officer.

3i’s previous investments in the industrial sector in Europe include Alimak Hek, a Swedish developer of vertical access equipment, Wendt, a German manufacturer of abrasive grinding tools, and STEN, a Spanish developer of formwork and scaffolding systems.

The firm’s growth capital business typically invests between €10 million and €150 million from its own balance sheet for minority stakes in businesses. It opened a New York office last year.