Management Investment Group Purchases Novatec and Discloses Plan to Broaden Company's Leadership in Auxiliary Equipment
Innovations and Staff Additions Will Be Disclosed as Early as NPE 2006 (Booth 2576), including New Technologies for Reducing Energy Consumption
BALTIMORE, MD, U.S.A., May 11, 2006: A group of private investors led by two key plastics auxiliary equipment executives has purchased Novatec, Inc., a leading supplier of material handling systems, and aims to double the size of the company in three years, it was announced today by Conrad M. Bessemer, president and CEO of the new Novatec. The terms of the buyout were not disclosed.
Bessemer, who also is managing partner of the investment group, was head of Conair North America and Conair-Americas until he resigned in February 2006. He had served Conair in executive roles for 19 years and is widely credited for a recent resurgence of new product development and market share. Another member of the management buyout team is Lawrence F. DeBaugh, who was president of Novatec and now is chairman of the new Novatec. Longtime executive vice president John W. (Jack) Doub will remain in that position. In addition, Bessemer noted, more key people "with strong backgrounds in plastics and resin handling systems" will join the company even before next month's NPE 2006 exposition.
The strategic plan of the new management group builds on Novatec's strengths as a leader in the engineering of total resin handling systems and a supplier of the industry's broadest range of resin dryers, according to Bessemer. "We intend to double the size of Novatec over a three-year period through innovative technology, broader product range, new marketing initiatives, and expansion into Europe and Asia from the company's current market base in the Americas," he said. "The driving force in this rapid growth will be the interaction of three elements critical to our customers' success: Novatec people who are expert professionals, Novatec technologies that are continually improved, and an ISO 9001-certified Novatec process that assures quality and consistency in products and service. This interaction is symbolized by our new, 'global' logo."
As early as NPE 2006, Bessemer added, Novatec will demonstrate a "quick-to-market approach" by introducing multiple new technologies, including dryer and blender systems in addition to those previewed before the acquisition.
Amidst this innovation, the new Novatec will preserve such longstanding company values as specialized engineering and willingness to build-to-order for customers, according to Bessemer. In addition, Novatec will continue to manufacture and assemble its equipment systems only in North America. There is ample room for expansion at the existing facility in Baltimore, Bessemer noted.
New Novatec to Address Today's Key Challenge: Saving Energy
Much of the innovation at Novatec will focus on energy efficiency, according to Bessemer. "Roughly 20,000 of the dryers now in operation are ten years old or older and use up to 50% more energy than they have to," he noted. "Now that energy costs have soared, there is an enormous demand for energy-efficient dryers that Novatec will meet with current and new technology. We intend to back up our energy-usage claims with data on actual energy consumption for every dryer we sell."
Plastics processors can choose among a range of dryers based on moisture-removal technologies as different as hot air, compressed air, desiccants, and infrared radiation. "As a supplier of dryers based on the full range of technologies, Novatec can consult openly and honestly with its customers, helping them to identify the absolute best drying method for their particular applications," Bessemer said.
Before the buyout, Novatec had announced plans to introduce an infrared rotary dryer and crystallizer for PET resin at NPE 2006, which takes place June 19-23 in Chicago. "This is the industry's first proven infrared dryer, and it will revolutionize the process of conditioning PET for production of sheet, film, and bottles," Bessemer said. "Its innovative drying process provides substantial energy savings in comparison with conventional desiccant systems because of the speed with which it removes moisture and crystallizes amorphous virgin or regrind PET." In addition to the infrared dryer, the Novatec exhibit at NPE 2006 will include an entire section of products dedicated to the PET industry.
At NPE 2006, the full range of Novatec products-including dryers, blenders, material conveying products, and control systems-will be shown at South Hall booth 2576.
Novatec's involvement with drying technology goes back to the late 1930s, when the company that would later be named Novatec started business as a supplier of dehumidifying equipment to the U.S. military. Novatec's plastics specialization dates to 1973. Not long afterward, the company diversified into conveying systems and other plastics raw material handling equipment. The name Novatec is derived from "Northern Virginia Technology."
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NOVATEC, INC. is a leading supplier of resin drying, blending, and pneumatic conveying systems to plastics processors. The ISO 9001-certified company specializes in custom-engineered material handling systems that meet specific process and production requirements. Its range of dryers is the broadest in the industry, including desiccant, hot air, compressed air, and infrared systems, as well as the patented NovaDrier(TM) compressed air / membrane dryer. Novatec, Inc. is headquartered at 222 East Thomas Avenue, Baltimore, MD 21225 U.S.A. Tel: 410-789-4811. Fax: 410-789-4638. Email: sales@novatec.com.
CAPTION # 1: Shown are three officials of the new Novatec: (from left to right) Lawrence F. DeBaugh, chairman; Conrad M. Bessemer, president and CEO, and John W. (Jack) Doub, executive vice president. [For individual photos of these persons, contact Bob Martino at bob@martinocommunications.com.]
CAPTION #2: The logo for the new Novatec, reflects a new look and the company's "global" approach to adding value for customers.
Robert J. Martino
Martino Communications Inc.
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