15 year hold, exited Feb. 2019
Plasma Coatings, Inc (Middlebury, CT) was acquired in 2003 and merged with the American Roller Company. This provided a liquidity event for three retiring shareholders and enabled Plasma’s President to co-invest in and support a plan for long term growth.
CMA found the business attractive for investment due to superior fundamentals:
- Leader within its market niche, possessing recognized brand name for high quality products and service and aligning with the American Roller Company long term business strategy
- Technical expertise in web processing and new product development
- Strong, loyal relationships within blue-chip customer base
- 25+ year unbroken chain of profitability and steady revenue growth
In the four decades prior to CMA’s ownership, Plasma developed a leading brand name in applying custom industrial coatings to production equipment used in the converting, paper and rubber industries, where controlling resistance and wear provided better performance. CMA through the course of its 15-year ownership substantially grew the business which included greenfield startups in Shanghai, China and Houston, TX. The Shanghai operation served China-based manufacturers that required Plasma’s custom coatings and the Houston business supplies oil and gas field services companies with coatings that extend the life of downhole tools, pumps and valves.
Plasma’s operations were split into two divisions in 2012: web processing and oil & gas. Note the web processing component was exited in February 2019 in conjunction with the sale of the American Roller Company’s web processing division and Arcoteq, the renamed industrial division based in Houston, continues to serve the oil and gas industry.