PLATTSBURGH — A New York City-based private equity firm has signed an agreement to acquire Mold-Rite Plastics.
Mold-rite Chief Financial Officer Tom Recny said employees at the Plattsburgh plant were told in person that Irving Place Capital has agreed to buy the company.
Phil Yates, a senior adviser at Irving Place Capital, will join Mold-Rite as executive chairman once the two sides close on the deal, expected within 60 days.
Yates, along with Geoffrey Titherington and Diane Titherington McCarty of Mold-Rite, met with employees and delivered a statement, Recny said.
"We do intend to keep the plant here in Plattsburgh open," it said. "In fact, we intend to grow it as we all work together to provide great quality and excellent service to our customers."
Recny said the message was well received by the slightly more than 350 employees.
"It's good for the company. The company will be here, and we hope to grow and expand the business."
Terms of the transaction were not released.
City of Plattsburgh Mayor Donald Kasprzak said he contacted Mold-Rite with concerns about the company's status in Plattsburgh after he learned of the planned sale. He was relieved when told there were no plans to leave or conduct layoffs.
"I am very pleased Mold-Rite and all its employees will be staying in the City of Plattsburgh and we will do everything we can to make this transaction successful," he said.
Recny said Mold-Rite had been exploring opportunities for upward of a year.
The company is a leading manufacturer of plastic caps, child-resistant closures, vials and jars, primarily for the pharmaceutical, nutra-ceutical and personal-care markets.
Yates brings 35 years of experience in the industry to Mold-Rite. He was previously chairman and CEO of Graham Packaging, a global leader in rigid plastic packaging. During his time there, sales increased from $500 million to $2.5 billion.
In a press release, Yates said Mold-Rite is a highly successful business in one of the most attractive sectors of the packaging industry.
"The company has substantial growth potential, and I am confident that with IPC's deep industry knowledge and significant resource, we will be able to quickly execute a number of initiatives to further support the needs of our customers."
Mold-Rite was founded by Geoffrey Titherington in 1976. At the start, there were six full-time employees working in a 7,200-square-foot building that housed five injection molding machines.
It has moved and expanded several times since.
It is now located in a 400,000-square-foot facility on Plant Street in the City of Plattsburgh. It houses 100 injection molding machines, 35 lining machines and 17 decorating machines.
Mold-Rite designs and builds its own molds, which allows it to offer its customers complete design, engineering and printing services for their packaging needs.
Mold-Rite was named Manufacturer of the Year by the National Association of Container Distributors in 1991, 1993 and 1995.
Irving Place Capital is described as a middle-market private equity firm. It invests private equity capital in compelling buyouts, recapitalizations and growth capital opportunities.
Since it was formed in 1997, Irving Place Capital has been an investor in more than 60 portfolio companies and has raised more than $4 billion of equity capital, including its current $2.7 billion institutional fund.
Its notable packaging investments include Chesapeake Corporation and Multi Packaging Solutions.
Irving Place Capital Senior Managing Director Phil Carpenter said the Mold-Rite acquisition is an exciting development for its packaging side.
"We have been actively looking to invest in the caps and closures segment for some time and Mold-Rite is an exceptional platform," he said.
"We look forward to our partnership with Mold-Rite's management team and are very focused on realizing the company's tremendous potential."
E-mail Dan Heath at:
dheath@pressrepublican.com
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