Spectrum Plastics Group Pexco LLC enters the injection molding business, acquiring the Minnesota-based operation of Spectrum Plastics, Inc.
Pexco LLC, a leading North American specialty plastics processor, has entered the injection molding business, acquiring the Minnesota-based operation of Spectrum Plastics, Inc. Spectrum Minnesota (Spectrum) is a precision injection molder of advanced thermoplastics selling primarily into the medical and surgical, defense, and aerospace fields. The move formally represents a first step for Pexco outside its traditional profile extrusion processing technology.
Neil Shillingford, Pexco CEO, remarks, "For many years Pexco has long defined itself as a custom profile extruder, selling into a variety of applications and markets. But truly, from the broader perspective, which would include our downstream processing capabilities, our business has been specialty plastics conversion, fulfilling the needs of industry for value-added plastic components and products. So the addition of Spectrum fits our overall business paradigm quite well – strong niche market positions, great product manufacturing, complex engineering, and precision plastics conversion."
In many of Pexco's markets, its profile extrusions complement injection molded plastics when used ultimately with or within the end-products they serve. The availability of molded plastics to customers is expected to enhance the overall Pexco value proposition with integrated solutions.
Spectrum Plastics has been owned by Spell Capital Partners, a Minneapolis-based private equity firm. The Minnesota operation, led by Doug Johnson and which will retain the Spectrum name, brand, and leadership team under Pexco, has operated for over 50 years. The company employs approximately 160 individuals within a 105,000 square foot facility, featuring two medical grade clean rooms, some 40 injection molding presses from 12 to 600 tons, and in-house engineering and product development capabilities, including assembly and packaging services.
Spectrum is known for its ability to process complex engineering resins, especially those suited to medical products, notably implantable surgical devices and fixtures. Moreover, within the defense and aerospace segments, Spectrum manufactures precision components for significant U.S. military platforms and systems. All of these market applications have benefitted in recent years from material conversions to performance plastics.
Doug Johnson, Spectrum General Manager, remarks, "We at Spectrum are excited about partnering with Pexco and its management team. There's no doubt it's a great fit strategically and culturally. We believe there are strong commercial synergies to be had with our respective aerospace and medical markets, among others in our joint business pipeline requiring first-class plastics engineering. The two teams are committed to creating high-value plastics solutions for markets and customers."
This acquisition marks the second addition to Pexco since Odyssey Investment Partners, LLC purchased the custom plastics business in August of 2012. Pexco in July announced the acquisition of Scandia Plastics, a custom extruder more typical of its traditional business model but equally unique in its processing expertise and finishing capabilities.
Shillingford concludes, "While this step with Spectrum represents a slight strategic shift, and we intend to be more open to broader material processing opportunities and technologies as they are presented in time, ultimately both Spectrum and Scandia underscore Pexco's commitment to advancing the market of custom plastic solutions for its customers. Both are high-value precision plastic processors in specialty markets that fit our core objectives as a team."
