PLATTSBURGH — A new capital market company bought up Mold-Rite Plastics, a signal of future growth for the City of Plattsburgh plant, Vice President of Operations Eric Zeisloft says.
"We've been growing at a very high rate for the last 12 years, but this should enable us to grow at an even faster rate. It could mean more machines, more employees, possible expansions of buildings — there are a lot of opportunities."
MADE OF PLASTIC
Mold-Rite, a manufacturer of plastic packaging components, has an inventory built of more than 10,000 product offerings, including jars, dispensing closures and child-resistant closures. It is headquartered in Plattsburgh, situated on Plant Street behind St. Peters Cemetery.
Zeisloft at the onset of the COVID-19 pandemic told the Press-Republican that sales, for products like pharmaceutical caps, had increased at the local plant.
"Our business has continued to grow at a crazy rate," he said Wednesday, noting that the plant had actually expanded in the past year and a half. "We've added new pieces of equipment and we've increased our employee headcount."
The plant employed some 500 in March 2020, but has since added more than 50 employees to its workforce.
"We have been growing with the growth and the demand," Zeisloft said.
Clearlake Capital Group, an investment firm based in California with approximately $43 billion of assets under management, recently announced it signed a definitive agreement to acquire the plastics manufacturer from Irving Place Capital.
Financial terms of the transaction were not disclosed.
"We are thrilled to partner with Clearlake, as the firm truly understands the packaging components industry and will help Mold-Rite capitalize on emerging growth trends," Mold-Rite President and CEO Brian Bauerbach says in a recent news release. "Our combination of innovative design solutions with a customer-centric approach has made Mold-Rite a trusted supplier.
"Clearlake’s operational knowledge and resources will allow us to grow our position in the market while we continue to innovate and provide quality products and services to our valued customers across the healthcare and consumer packaging segments in which we participate."
In a joint statement, Clearlake Co-Founder and Managing Partner José E. Feliciano and Clearlake Managing Director Arta Tabaee commended the Mold-Rite team for having stayed a key player in a number of target markets, like health and wellness, through the creation of a comprehensive line of products and by investing in processes and technology.
"The addition of Mold-Rite to our portfolio highlights our continued thesis in the healthcare and wellness packaging markets," the pair continue in the recent news release. "We believe long term consumer trends and preferences favor providers focused on sustainability and innovation. As such, we look forward to partnering with the Mold-Rite team to leverage our (operational improvement approach) O.P.S.® framework and continue driving growth for this exciting platform."
Evercore and Deutsche Bank Securities Inc. acted as financial advisors to Clearlake, and Deutsche Bank will also lead a new syndicated financing in support of the acquisition. William Blair served as exclusive financial advisor to Mold-Rite.
'CONGRATULATE AND THANK'
North Country Chamber of Commerce President and CEO Garry Douglas called the acquisition "good news for Mold-Rite and its employees."
"With new owners who are deeply engaged in the wellness and healthcare packaging sector as well as possessing the wherewithal to support Mold-Rite's continuing growth," Douglas said. "Mold-Rite has grown its business and its Plattsburgh operation even through the pandemic as demand for its specialized products has expanded, and investment in modernization is on-going.
"We congratulate Mold-Rite and thank our new friends at Clearlake for their investment and confidence in our shared future."
Plattsburgh City Mayor Christopher Rosenquest said the city would always welcome businesses with interest in building and growing in the Lake City.
"We welcome the folks from Clearlake Capital Group and want them to know that our door is always open."
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