Backing an “Undiscovered” Market Leader
Technimark (or the “Company”) is a leading global manufacturer of plastic injection molded products for consumer packaging and specialty technical applications. Based in Asheboro, NC, the Company operates five injection molding facilities globally, including one in North Carolina, two in Mexico, one in China and one in Germany. The Company also operates a recycled resin processing facility in North Carolina, which provides 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 includes some of the world’s best known brands. The Company strives to provide superior customer service across every phase of product development and production, including new product design, tooling, automation, decoration and manufacturing.
Prior to our investment, Technimark was owned by a foreign furniture manufacturer. 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.
Executing The Strategy
With the support of Quad-C, management executed the value creation plan which included:
- Transitioning business to focus on higher value added consumer packaging, which offers 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 (added 17 new customers contributing approximately $100 million of revenue since 2008).
- 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. The investors, including management, realized a significant return.