Private Equity: Good for Molders and Plastics Processors?
Fueled by historically low interest rates, private equity investment in the molding industry is at record highs. We have seen numerous high profile buyouts announced on the newswires in the last 2-3 years. So far in 2017, the following noteworthy companies have all been acquired or recapitalized in private equity sponsored transactions: R&D Molders, Xcentric Mold, Richardson Molding, Dutchland Plastics, Plastic Components, and Pexco (among others).
MBS is currently tracking over 165 molders that have private equity ownership. Is all this outside investment a good thing for the average molder or processor? Is it a good thing for the industry?