Brown Gibbons Lang & Company (“BGL”) announced the completed sale of its client Victor Plastics Inc. (“Victor”) to Spell Capital Partners LLC (“Spell Capital”), a private equity firm based in Minneapolis. Terms of the transaction were not disclosed.
Victor, a leading plastics injection molder, is headquartered in Victor, Iowa, and also has operations in Mexico and China. The company supplies highly-engineered thermoplastic components to a broad base of world-class manufacturers in the appliance, off-road vehicle, consumer products, and industrial equipment sectors.
Spell Capital purchased all of the stock in Victor from the estate of its founder, James Kubu. Mr. Kubu started the company in 1983 and successfully built Victor into one of Plastics News’ Top 100 injection molders. Regrettably, Mr. Kubu passed away in November 2002. He is survived by his wife and three children.
In marketing the transaction, BGL approached a select group of strategic and financial buyers with existing plastics investments or interests. Though strategic buyers showed considerable interest in the business, they were unable to match the values offered by financial buyers.
Spell Capital distinguished itself by its knowledge of the industry and through its successful history with the other plastics businesses in its portfolio. In addition, Spell Capital’s sensitivity to the issues of family owned and operated businesses helped significantly in completing the transaction.
Stephen Miles, Director of BGL, commented that “This is an important transaction not only for Victor and the Kubu family, but also for the plastics industry. Many owners of plastics businesses have been reluctant to pursue sale transactions during the past three years, but BGL’s success with this transaction demonstrates that there is a vibrant market for well-run plastics companies with defensible market positions. We expect to see significant levels of M&A activity in this sector in the coming year.”
Spell Capital Partners, LLC is a private equity and buyout firm based in Minneapolis, Minnesota. Spell Capital is engaged in the acquisition of controlling interests in well-managed, historically profitable manufacturing, distribution or service businesses. Spell Capital uses its expertise in acquisitions and financing in partnership with management to grow the businesses in which it invests, both internally and through add-on acquisitions. Spell Capital has a preference for businesses headquartered in the upper-Midwest. For more information, please go to www.spellcapital.com.
Brown Gibbons Lang & Company is a leading independent investment bank serving middle market companies and their owners throughout the U.S. and internationally. BGL’s professionals are experts in mergers & acquisitions, debt & equity placements, and financial restructurings, and were named 2003 U.S. Deal Makers of the Year by The Mergers & Acquisitions Advisor. BGL is the sole full partner representing the U.S. in the Global M&A Network, the world’s most active partnership of investment banking boutiques. For more information, please visit us at www.bglco.com.