Skip to content
  • Home
  • Services
    • Audit & Attest
      • Financial Statement Audits
      • Employee Benefit Plans
      • Attestation Engagements
      • Compilations & Review
      • SOC
      • Agreed-Upon Procedures
    • Advisory
      • Transaction Advisory Services
      • Cybersecurity, Technology Risk, Privacy
      • High Net Worth Services
      • Forensic Services
      • Litigation Services
      • Management Consulting
      • Technology Services
      • Valuation Services
    • Business & Tax
      • Corporate Income Tax
      • Individual Income Tax
      • International Tax
      • State and Local Tax Compliance and Tax Minimization Services
      • Tax Planning
    • T&C Family Office Group
  • Industries
    • Construction & Real Estate
    • Healthcare
    • Manufacturing & Distribution
    • Nonprofit Organizations
    • Private Equity Firms
    • Privately-held Companies
    • Technology & Energy
  • Firm
    • Overview
    • Our People
    • Our Community
    • Templeton Group
      • PracticePro 365
      • T&C Family Office Group
      • Templeton Investigative Services
  • Careers
    • Experienced
    • Students
    • Benefits
  • News
  • Pay My Bill
  • Home
  • Services
    • Audit & Attest
      • Financial Statement Audits
      • Employee Benefit Plans
      • Attestation Engagements
      • Compilations & Review
      • SOC
      • Agreed-Upon Procedures
    • Advisory
      • Transaction Advisory Services
      • Cybersecurity, Technology Risk, Privacy
      • High Net Worth Services
      • Forensic Services
      • Litigation Services
      • Management Consulting
      • Technology Services
      • Valuation Services
    • Business & Tax
      • Corporate Income Tax
      • Individual Income Tax
      • International Tax
      • State and Local Tax Compliance and Tax Minimization Services
      • Tax Planning
    • T&C Family Office Group
  • Industries
    • Construction & Real Estate
    • Healthcare
    • Manufacturing & Distribution
    • Nonprofit Organizations
    • Private Equity Firms
    • Privately-held Companies
    • Technology & Energy
  • Firm
    • Overview
    • Our People
    • Our Community
    • Templeton Group
      • PracticePro 365
      • T&C Family Office Group
      • Templeton Investigative Services
  • Careers
    • Experienced
    • Students
    • Benefits
  • News
  • Pay My Bill
CONTACT US

PErspective in Manufacturing

  • Blog, Manufacturing & Distribution

The U.S. plastics industry is enjoying record growth, driven by strong performance in the transportation, healthcare and packaging end markets, as well as persistently low natural gas and oil prices, according to Plastics News. Plastics manufacturing accounts for roughly 5 percent of global oil consumption—and as oil prices drop, so does the cost of plastics manufacturing. A report by the Society of the Plastics Industry (SPI) released in December showed plastics jobs grew from 940,000 in 2014 to 1.7 million in 2015, and shipments rose from a record $427.3 billion in 2014 to an even more impressive $583.7 billion in 2015.

Three recent plastics-related private equity deals—all announced this February—suggest that the booming sector is becoming increasingly attractive to financial investors. Private equity firm Olympus Partners bought commercial melamine serviceware company G.E.T. Enterprises for several hundred million dollars, and plans to use the company as an acquisition platform. Olympus has bought and sold several plastics-related companies over the last few years and intends to boost its stake in the sector further, Plastics News reports.

Arsenal Capital Partners’ Polymer Solutions Group (PSG) announced it had purchased Flow Polymers from private equity firm Geneva Glen Capital, which had bought the firm in 2010. Arsenal formed PSG in August 2015 with the acquisition of Peach State Labs. The deal is Arsenal’s 15th plastics-related acquisition since 2012, according to Plastics News.

Audax Private Equity announced the purchase of Preferred Compounding from Wingate Partners for an undisclosed sum. Since being acquired by Wingate in 2010, the Barberton, Ohio-based company had grown into the second largest custom rubber compounder in North America, Reuters reports. The Middle Market Growth Program, managed by Antares and LStar Capital, provided a senior secured unitranche credit facility to finance the deal.

Private equity firms that bought plastics companies following the global financial crisis are coming to the end of their investment cycles. As they look to exit their investments and return profits to their limited partners, they are finding willing buyers amid a sector poised for further growth. With vast amounts of dry powder in their stores and no immediate rebound in sight for oil prices, the plastics industry is providing promising investment opportunities for private equity firms with an interest in the sector.

This article originally appeared in BDO USA, LLP’s “Manufacturing & Distribution” newsletter (Spring 2016). Copyright © 2016 BDO USA, LLP. All rights reserved. www.bdo.com

Categories
  • Agribusiness
  • Assurance, Advisory & Review
  • Audit & Attest
  • Blog
  • Business and Tax
  • Business Consulting & Corporate Compliance
  • Corporate Income Tax
  • Current Opportunities
  • Cybersecurity, Technology Risk, Privacy
  • Employee Benefit Plan
  • Employee Benefit Plans / 401(k)
  • Healthcare
  • High Net Worth Individuals
  • High Net Worth Services
  • Individual Income Tax
  • Industries
  • Manufacturing & Distribution
  • Newsletter Articles
  • Newsletters
  • Nonprofit
  • Press Releases
  • Privately Held Companies
  • Professional Services
  • Real Estate & Construction
  • Retail
  • Services
  • Specialty Tax Services
  • State and Local Tax Complianc
  • T&C Family Office Group
  • Tax Planning
  • Tax Planning & Compliance
  • Technology
  • Uncategorized
  • Valuation Services
  • Valuation Services

SHARE THIS ON:

RELATED POSTS

Employees may need help recognizing, understanding mental health benefits

The Affordable Care Act generally requires mental health coverage to be included in employer health insurance plans. However, many employers offer additional benefits to help

Read More »

After a person dies, his or her debts live on

One question the family of a deceased person often asks is: What happens to debt after a person dies? It’s important to realize that a

Read More »

When corporate sponsorships raise UBIT issues

Under the Internal Revenue Code, “qualified sponsorship payments” to not-for-profits aren’t subject to unrelated business income tax (UBIT). Qualified payments refer to money, property transfers

Read More »

Contact Us

WEST PALM BEACH
Esperante Building
222 Lakeview Avenue
Suite 1200
West Palm Beach, FL 33401
(561) 798-9988
Fax: (561) 798-4053

FORT LAUDERDALE
The Main
201 East Las Olas Boulevard
Suite 1650
Fort Lauderdale, FL 33301
(954) 333-0001
Fax: (954) 765-0719

Twitter Facebook Instagram Youtube Linkedin
© 2025 Templeton & Company. All Rights Reserved. Website by Weber & Co.
Services
  • Audit & Attest
  • Advisory
  • Business & Tax
  • T&C Family Office Group
  • Pay My Bill
  • Audit & Attest
  • Advisory
  • Business & Tax
  • T&C Family Office Group
  • Pay My Bill
Industries
  • Construction & Real Estate
  • Healthcare
  • Manufacturing & Distribution
  • Nonprofit Organizations
  • Private Equity Firms
  • Privately-held Companies
  • Technology & Energy
  • Construction & Real Estate
  • Healthcare
  • Manufacturing & Distribution
  • Nonprofit Organizations
  • Private Equity Firms
  • Privately-held Companies
  • Technology & Energy
Firm
  • Overview
  • Our People
  • Our Community
  • Templeton Group
  • Terms & Conditions
  • Overview
  • Our People
  • Our Community
  • Templeton Group
  • Terms & Conditions
Careers
  • Experienced
  • Students
  • Benefits
  • Experienced
  • Students
  • Benefits