Core Molding Technologies has announced it has acquired substantially all of the assets of CPI Binani, located in Winona, Minnesota.
CPI is a producer of direct long-fibre thermoplastics for 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.
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.
Long-Fibre reinforced thermoplastics systems are resistance to chemicals, recyclable and feature fast processing times in many complex product configurations. Widely popular in Europe and Asia, direct long-fibre thermoplastics technology is still growing in North America, where applications are concentrated in the automotive industry, but include many non-automotive applications as well.