Core Molding Technologies acquires LFT specialist CPI Binani

Compounder and molder Core Molding Technologies is paying $15 million for Minnesota-based CPI Binani, which manufactures direct long-fiber thermoplastic (D-LFT) products.

Core Molding Technologies Inc. (Columbus, OH, US), a compounder of custom sheet molding compound (SMC) and molder of fiberglass composites, announced on March 20 that it has acquired substantially all of the assets of CPI Binani Inc. (Winona, MN, US). CPI is a manufacturer of direct long-fiber thermoplastic (D-LFT) products, serving the marine, automotive, packaging and other industries. CPI was previously a wholly- owned subsidiary of Binani Industries Limited (Mumbai, India). The transaction is an all-cash deal of $15 million, and includes a staff of approximately 100 people and a manufacturing facility of 7,711m2.

Core says that use of a direct process, where 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 nonautomotive applications as well. Lucintel, a market research organization that specializes in composite processes, estimates the North American D-LFT market is growing at a CAGR of 7-9%.

“Continuing to expand our composite technology offerings for our diverse customer base is a key element of our growth strategy,” says Kevin L. Barnett, president and CEO of Core Molding Technologies. “CPI is a pioneer in direct long-fiber thermoplastic processing and continues to expand the applications of this versatile material system,” he said. “In addition to a new technology offering, the acquisition brings us existing programs with industry-leading customers, experienced leadership, a motivated and capable workforce, expanded geographic reach and an industry-leading 5,000-ton processing system, all of which fit our interests quite nicely.”

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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