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Core Molding Technologies acquires CPI Binani

News International-French

24 Mar 2015

The North American compounder of custom sheet molding compound (SMC) and molder of fiberglass reinforced plastics, announces that it has acquired substantially all of the assets of CPI Binani, 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.

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.

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