Platinum Equity has agreed to acquire the foam plastics and flow control devices divisions from Broadway Industrial Group for about $111 million. The purchase follows Platinum’s 2015 deal for plastics injection manufacturer Ying Shing Enterprises.
Broadway’s foam plastics business provides insulation and packaging products to the consumer electronics, automotive and medical sectors. The flow control devices division supplies valves and fittings to the automotive and semiconductor industries. Broadway Industrial is a Singapore-based industrial parts distributor. The company considered the assets being sold to Platinum non-core and will use at least some of the sale proceeds to pay down debt.
“This acquisition creates a strong platform for growth and we are eager to work with the management team to pursue opportunities to expand the business both organically and through strategic add-on acquisitions,” says Platinum principal Soo Jin Goh.
Platinum Equity is a Los Angeles-based private equity firm that was founded in 1995 by Tom Gores and has more than $6 billion under management. The PE firm has more than 25 operating companies in manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications.
Earlier in 2016, Platinum acquired Electro Rent Corp., which leases and sells electronic test equipment, personal computers and servers. The PE firm also agreed to buy Emerson Electric Co.’s (NYSE: EMR) network power division and purchased food ingredient distributor JM Swank from ConAgra Foods Inc. (NYSE: CAG).
Demand for packaging has been driven by companies looking to expand into new markets. Packaging Corp. of America (NYSE: PKG) is acquiring TimBar Corp.; Sabert Corp. has acquired Mullinix Packages Inc. and Novolex, backed by Wind Point Partners, purchased Heritage Bag Company.