Technimark (the “Company”) is a leading global manufacturer of plastic injection molded products for consumer packaging and specialty technical applications. Based in Asheboro, NC, at the time of our investment, the Company operated five injection molding facilities globally, including one in North Carolina, two in Mexico, one in China and one in Germany. The Company also operated a recycled resin processing facility in North Carolina, providing processed post-consumer and post-industrial resin for use in Technimark’s and other companies’ finished products. Technimark serves a broad and distinguished customer base that included some of the world’s best-known brands. Quad-C was attracted to the business as a technology leader with superb customer relationships that was relatively unknown outside its existing customer base. We partnered with the original founders to acquire the business from its corporate parent and invest in growth.
With the support of Quad-C, management executed the value creation plan which included:
Transitioning the business to focus on higher value-added consumer packaging, which offered a more stable and recurring revenue stream and higher return on capital.
Building a sales and marketing organization to increase awareness of Technimark’s technical capabilities.
Developing commercial relationships with additional global CPG companies, adding 17 new customers contributing approximately $100 million of incremental revenue during our investment.
Acquiring a recycled resin processing facility, making Technimark one of the only injection molders in the U.S. vertically integrated in recycled resins.
During Quad-C’s investment period, Technimark made approximately $100 million in capital investments and grew sales by more than 120%.
After almost seven years of strong organic growth, customer diversification and a transition of the business to consumer packaging, Quad-C sold Technimark in April 2014 at an attractive gain.