Merit Investment Bank Advises GlobalTech Plastics on its Sale to Molded Dimensions, a Platform company of Shoreview Industries

The Challenge

- GlobalTech Plastics was an additive manufacturer moving towards an Industry 4.0 platform. They were a leader in the injection molding of Engineered plastics. They produced close tolerance parts for regulated industries such as Aerospace, Transportation, and Healthcare.
- The company was founded in 2003 by three technology-forward industry veterans who invested in systems and technology befitting a company three times their size. This made them a leader in the adoption of technology, robotics, and automation as well as real-time production monitoring.
- Their goal for an exit was to seek liquidity. This would allow two of the three founders to retire. The third founder would be able to roll some equity and remain in the company to take part in a “second bite of the apple.”


The Solution

- The challenge Merit Investment Bank faced was to prove that the company could be a platform acquisition or an add-on acquisition for a larger strategic acquirer. GlobalTech was on the smaller side for a platform but possessed all the systems and processes to scale rapidly into a platform scale. It is uniquely challenging to satisfy the interests of all shareholders as well as find a buyer comfortable with allowing shareholders and key management to exit the business immediately after the sale.
- The Merit Investment Bank team marketed the opportunity broadly to both plastics and rubber manufacturers, both strategic and sponsor-backed (financial) acquirers seek to find the best fit for the shareholders to meet their objectives.


The Results

- During the early stages of the engagement, the Merit Investment Bank team guided the GlobalTech owners through strategic decision-making to ensure they were well-positioned for a sale. One of the key deliverables was to ensure key stakeholders in the process were well informed about the process and their role. As a result, the company was well-positioned for the best available offer.
- As a result, the company received several offers. One of the offers hit the trifecta of M&A: (1) Best price, (2) best culture, and (3) expertise fit. Not only this, but it also met all the shareholders' personal objectives of a full exit and future participation for the one remaining shareholder.
- In the end, the deal had a few challenges getting across the finish line but through patience, persistence, and deft negotiations the Merit Investment Bank team brought another deal in advanced manufacturing to a closing. The company now sits as what we call a “platform within a platform” as it was acquired by a rubber company seeking to build its presence in plastics and leverage cross-selling opportunities in both rubber and plastics.