Core Molding Technologies Acquires CPI Binani, Expands Its Thermoplastics Capabilities
COLUMBUS, Ohio – Core Molding Technologies, Inc. (NYSE MKT: CMT), 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. ("CPI"), 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 $15 million, 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. Lucintel, a leading market research organization that specializes in composite processes, estimates the North American D-LFT market is growing at a CAGR of 7-9%.
CPI had annual sales in 2014 of approximately $20 million. The Company expects the transaction to be approximately $.01 to $.02 accretive to earnings per share for the remainder of 2015 and does not expect any significant restructuring, shut-down or employee severance costs during 2015.
"We are excited about adding the D-LFT technology to our growing portfolio of fiber-reinforced composite processes, and to advancing the opportunities the CPI team has under development," Barnett said. "Additionally, we see opportunities to offer the D-LFT technology to our existing customers and to cross-sell our thermoset technology to CPI's customers. The D-LFT technology is complementary to our existing operations in many ways. Integration is expected to be completed by year-end," he said.
ABOUT CORE MOLDING TECHNOLOGIES, INC.
Core Molding Technologies, Inc. is a manufacturer of sheet molding compound (SMC) and molder of fiberglass reinforced plastics. Core specializes in large-format moldings and offers a wide range of fiberglass processes, including compression molding of SMC, glass mat thermoplastics (GMT) and bulk molding compounds (BMC); spray-up, lay-up, resin transfer (RTM) and vacuum resin transfer molding (V-RTM). Additionally, the company offers liquid molding of dicyclopentadiene (DCPD). Core serves a wide variety of markets, including the medium and heavy-duty truck, marine, automotive, agriculture, construction and other commercial products. Headquartered in Columbus, Ohio, Core maintains plants in Columbus and Batavia, Ohio; Gaffney, South Carolina and Matamoros, Mexico. For further information, visit the company's website at www.coremt.com.
SOURCE Core Molding Technologies, Inc.
CONTACT: John Zimmer, (614) 870-5604
Web Site: http://www.coremt.com