Injection moulder Oneida Molded Plastics LLC has a new owner.
Cedar Ridge Holding Co. is acquiring Oneida from Argosy Private Equity, which specializes in outdoor recreational, general industrial and military products.
Cedar Ridge, of Mankato, Minnesota, cited Oneida’s management and employees as the reason for the deal.
“We are very excited to work with an exceptional management team that has truly made the company a leader in the outdoor leisure industry. Hence, we acknowledge the great work they have done over the past few years. And we feel we can build on that momentum, “said Darren Brathol, partner at Cedar Ridge Management, in an interview on Sept. 3.
Brathol owns Cedar Ridge together with Blake Hermel, also a managing partner. In the takeover announcement, he referred to Oneidas “significant market share in the leisure-outdoor industry”.
Argosy is leaving its OMP investment after more than 15 years. The private equity firm was part of a 2006 transaction in which Reunion Industries Inc. sold its ORC Plastics division to the newly formed OMP.
OMP also had operations in Phoenix, NY and Siler City, NC at the time, but the locations were eventually consolidated into the company’s Oneida, NY facility.
OMP has its roots back to 1964 and originally focused on electronics. Now the company calls itself “one of the world’s leading suppliers of firearms components,” which now has customers in both the US military and outdoor recreational products industries.
OMP operates from an 84,000-square-foot facility with 36 injection molding presses with a clamping force of 35 to 700 tons, according to the company’s website.
In addition to manufacturing components for outdoor recreation, electronics, automotive, health and fitness are other major markets, according to the company.
“OMP has a strong and anchored position in its core outdoor leisure segment and offers robust manufacturing capabilities for precision components,” said David Evatz, Managing Director of Stout Investment Banking, an investment bank and advisory firm that was involved in the transaction.
Hermel stated in a post on LinkedIn that more than 200 employees work for OMP.
“Cedar Ridge is a new private investment firm. We are focused on building generation businesses. Our plan is to invest in people, equipment and processes over an indefinite period of time,” said Brathol. “We are of the opinion that the long-term holding strategy for us as investors and what we want to achieve is a little better and cheaper.”
Cedar Ridge will now seek to grow the business through internal investments as well as “opportunistic add-on acquisitions that make sense to us,” Brathol said.
The new company owners were particularly drawn to the management skills and experience of OMP.
“We have previous life experience with plastic parts, be it [has] Injection molding, blown film, compounding. We are familiar and familiar with the plastics industry in general, especially when it comes to the outdoor segment, “said Brathol.