Monomoy Capital Partners has paid an undisclosed amount for plastic molding company Moll Ramos in what is the firm’s third plastic molder add-on in six months.
Moll Ramos will be integrated into Monomoy’s plastic molder platform Fortis Plastics, a plastic injection and extrusion platform the firm formed in 2008 through the acquisition and merger of the custom molding units of Leggett & Platt and Atlantis Plastics.
Moll Ramos serves US and Mexican appliance makers including GE Appliance and Kenmore. Moll operates a 136,000 square-foot facility in Ramos Arizpe, Mexico, in an industrial zone that houses Fortis’ single largest customer, Whirlpool, as well as John Deere, Carrier and Black & Decker.
Expansion into Mexico has been a strategic goal since the Fortis platform was created, according to Mayank Singh, a vice president with Monomoy.
“This is a huge competitive advantage over US-only molders, because the US-only molders can’t follow their big customers down to Mexico,” Singh said in an interview, adding that close proximity to the company’s customers is a major factor in the plastics business. “You can help your customers manage inventory,” he said. Close proximity to customers also cuts down on shipping costs, he said.
The custom plastic molding sector is “profoundly challenged by current economic conditions and the collapse of the automotive industry”, Singh said. Many molders are not well-capitalised and are struggling to survive, and Fortis is in a strong position to thrive in the sector because of its strong capitalisation and Monomoy's support, he said.
“This industry won’t turn around for another 12 to 16 months,” Singh said.
Monomoy has been active despite the stagnant deal environment of the past six months. The firm bought L&P Plastics, which makes parts for power tools, medical devices, furniture and vehicles, in September for an undisclosed amount.
Monomoy acquired Atlantis Plastics’ molded plastics group out of bankruptcy in October for $23 million. The company’s molded plastics group makes custom plastic components for the appliance, recreational vehicle, building products and automotive industries.
Monomoy invests from a $280 million fund in mid-market companies.