Molding Technologies, Inc., a leading North American compounder of custom sheet molding compound (SMC) and molder of fiberglass reinforced plastics, today announced it has acquired substantially all of the assets of CPI Binani, Inc., located in Winona, Minnesota. CPI is an innovator and active producer of direct long-fiber 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 Mumbai, India. The transaction is an all-cash deal of US$15 mln, which Core will finance through a new senior secured five-year term loan. The acquisition includes a staff of approximately 100 individuals and a manufacturing facility of 83,000 square feet.
"Continuing to expand our composite technology offerings for our diverse customer base is a key element of our growth strategy," said Kevin L. Barnett, President and Chief Executive Officer of Core Molding Technologies. "CPI is a pioneer in direct long-fiber thermoplastic processing and continues to expand the applications of this versatile material system," he said. "In addition to a new technology offering, the acquisition brings us existing programs with industry leading customers, experienced leadership, a motivated and capable workforce, expanded geographic reach and an industry-leading 5,000-ton processing system, all of which fit our interests quite nicely."
Long-fiber reinforced thermoplastics systems are attractive for their versatile performance characteristics, resistance to chemicals, recyclability and fast processing times in many complex 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 automotive industry, but include many non-automotive applications as well