Home / News / Core Molding acquires producer of D-LFT goods CPI Binani

Core Molding acquires producer of D-LFT goods CPI Binani

28 Mar '15

2 min read

Core Molding Technologies, compounder of custom sheet molding compound (SMC) and molder of fiberglass reinforced plastics said it has acquired CPI Binani located in Winona, Minnesota.

CPI is an innovator and active producer of direct long-fibre thermoplastics (D-LFT) products, serving the marine, automotive, packaging and other industries.

CPI was previously a wholly-owned subsidiary of Binani Industries Limited, based in India and the transaction is an all-cash deal of $15 million, which Core will finance through a new senior secured five-year term loan.

“The acquisition includes a staff of approximately 100 employees and a manufacturing facility of 83,000 square feet,” Core Molding said in a press release.

CEO Kevin Barnett said, “CPI is a pioneer in direct long-fibre thermoplastic processing and continues to expand the applications of this versatile material system.”

“In addition to a new technology offering, the acquisition brings us existing programs with industry leading customers, expanded geographic reach and an industry-leading 5,000-ton processing system,” he added.

Long-fibre reinforced thermoplastics systems are attractive for their versatile performance characteristics, resistance to chemicals, recyclability and fast processing times in many product configurations.

The use of a direct process, where the compounding of the material is connected directly with the compression molding operation, improves the economics of the technology.

Widely popular in Europe and Asia, D-LFT technology is still growing in North America, where applications are concentrated in the auto sector, but include many non-automotive applications as well.

Lucintel, a leading market research organization that specialises in composite processes, estimates the North American D-LFT market is growing at a CAGR of 7-9 per cent.

CPI had annual sales in 2014 of approximately $20 million and Core Molding expects the transaction to be approximately $.01 to $.02 accretive to earnings per share for the remainder of 2015.

“The D-LFT technology is complementary to our existing operations in many ways and integration is expected to be completed by year-end,” Barnett informed.

Headquartered in Columbus, Ohio, Core Molding maintains plants in Columbus and Batavia, Ohio; Gaffney, South Carolina and Matamoros, Mexico. (AR)

Fibre2fashion News Desk - India