Injection molding equipment company Husky Technology Ltd., Bolton, Ontario, is combining with CompoSecure Inc., a Somerset, N.J., financial-technology services firm, in a transaction that will value the combined business at approximately $7.4 billion.
“We believe this combination will create value and unlock new opportunities for Husky and its stakeholders,” said Louis Samson, co-president of Platinum Equity, Husky’s current shareholder.
He said the company planned to “roll more than $1 billion of equity into the deal.”
A Nov. 3 announcement of the merger noted that Husky will be run as a standalone business alongside CompoSecure and will continue to operate under its current management team. The deal is expected to close in the first quarter of next year, subject to customary closing conditions, including regulatory approval.
Samson and Platinum Equity Managing Director Delara Zarrabi are expected to join the CompoSecure board of directors. CompoSecure and Husky are expected to be separate reporting subsidiaries.
Founded in 1953 by plastics industry pioneer Robert Schad, Husky manufactures injection molding machines, hot runners and molds. It has no immediate plans for changes to operations or customer experience, said Bradley Selleck, who became the company’s CEO last October.
“Husky Technologies will build on the strong foundation we’ve established over our 72-year history,” he said. “With CompoSecure’s long-term partnership, we will continue to invest in the technologies, systems and capabilities that matter most to our customers and team members. Our focus remains on delivering high performance, reliability, service excellence and innovation.”
He continued, “Husky will continue executing its current growth strategy, with sustainability and innovation remaining central to its future pipeline.”
Dave Cote, executive chairman of CompoSecure, which was founded in 2000, said the transaction offers good potential for investors.
Husky, he said, “holds a great position in a good industry, significant technology differentiation, organic and inorganic growth possibilities and margin expansion potential.”
About the Author
Karen Hanna
Senior Staff Reporter
Senior Staff Reporter Karen Hanna covers injection molding, molds and tooling, processors, workforce and other topics, and writes features including In Other Words and Problem Solved for Plastics Machinery & Manufacturing, Plastics Recycling and The Journal of Blow Molding. She has more than 15 years of experience in daily and magazine journalism.