Private equity firm acquires plastics distributor for $55M
A long-time plastics distributor in the region has been acquired by a Texas-based private equity firm for $55 million.
Kalamazoo-based Total Plastics has been purchased by Prophet Equity in Southlake, Texas, just northwest of Dallas.
Total Plastics has 15 branch locations, including one in Grand Rapids, and two subsidiaries.
“Speaking on behalf of the entire organization, we couldn’t be happier with how this process played out and that we are now a portfolio company of Prophet Equity,” said Tom Garrett, president, Total Plastics.
“This entire process has been a re-affirmation of the exceptional work we do here at every level. It afforded us a unique opportunity to spend time assessing our history, our guiding principles, our successes and our direction.”
For nearly 20 years, Total Plastics was owned by Oak Brook, Illinois-based metal distributor A.M. Castle & Co., which announced its intentions to sell the company about two months ago.
The sale is in part of a debt restructuring plan.
“Our decision to sell Total Plastics is the right one for both entities,” said Steve Scheinkman, CEO, A.M. Castle & Co. “It allows Castle to focus on our core metals business and Total Plastics to pursue its own strategic objectives.”
Total Plastics, founded in 1978, is a distributor and fabricator of plastic sheets, rods, tubes, films and tapes.
The company has more than 350 employees.
While most Total Plastics employees are in West Michigan, the company can be found in 10 states.