The specialty plastic extruder Pexco LLC has grown again through acquisitions.
Pexco acquired Custom Extrusion Inc. on August 14th on undisclosed terms. Custom Extrusion is based in Sheffield, Massachusetts, and also operates a manufacturing facility in Asheboro, NC
“The acquisition gives us a presence in the Southeast,” said Steve Demboski, Pexco’s chief financial officer, in a telephone interview with Plastics News.
“I believe this will be the first of many acquisitions,” he predicted. “The market is fragmented.”
Pexco focuses on industrial markets. It was spun off from Spectrum Plastics Group in April to focus on lighting and custom extrusions for a number of industries including privacy fencing, traffic safety, filtration and bio-media applications, Demboski said. Spectrum will focus on the medical and film markets.
Pexco and Spectrum are each owned by different AEA Investors LP funds. AEA was founded in 1968 by the Rockefeller, Mellon and Harriman families and SG Warburg & Co. as a private equity fund. AEA has offices in New York, Connecticut, London, Munich and Shanghai and manages approximately $ 10 billion in funds in medium and small businesses. AEA bought Spectrum earlier this year from the private equity group Kohlberg & Co. LLC. Kohlberg founded Spectrum in May 2017 when it bought the earlier version of Pexco and combined it with other companies.
With the acquisition of Custom Extrusion, Pexco, headquartered in Alpharetta, Georgia, has seven manufacturing facilities in Massachusetts, New Hampshire, Pennsylvania, Washington and Monterrey, Mexico. It employs about 600 and operates about 100 extrusion lines. The former Pexco has grown through several acquisitions since 2010.
Spectrum operates extrusion plants in five countries. Before Pexco was spun off, Spectrum had a total of 15 manufacturing facilities and approximately 2,000 employees.
“[Custom Extrusion] brings extensive expertise in lighting and custom industrial extrusions, “said Sam Patel, CEO of Pexco, in a press release.” They are known for their excellent service and strong history as a leading solution provider that perfectly complements the Pexco culture fits.”
Custom Extrusion was founded in 1957 in western Massachusetts. The proximity to the former headquarters of GE Plastics helped him develop technical progress in extrusion, the company claims on its website. Harold Stover was one of the founders. Richard Stover was President of Custom Extrusion prior to Pexco’s acquisition but retired in April.