Viking

Private equity group Spell Capital Partners LLC has purchased Viking Plastics, a Pennsylvania-based injection molder with a specialty in tight tolerance proprietary products.

Viking, which is the operating name of VPI Acquisition Corp., serves the auto, heating and air conditioning and industrial markets with customers including Ford Motor Co., Fiat Chrysler Automobiles, General Motors Co. and Parker Hannifin.

"Over the last six years we've had increasing growth … and at some point expansion and execution of that strategic plan over the next five years would require additional investment," said Kelly Goodsel, owner and CEO. "Looking at my personal bank account, writing those big checks for acquisitions and further expansion wasn't something that made sense from a financial [perspective] for our employees, for the facility and for our customers. So finding a partner like Spell turned out to be the right decision for us."

Goodsel will remain at the Corry, Pa.-based company and is retaining significant ownership.

"Myself and the management team have long-term plans to stay with the business," he said. "… No operational changes in terms of personnel, in terms of facilities; all of that is staying in place exactly as it is."

Financial terms of the deal were not disclosed. Viking does not disclose its sales, but Goodsel placed the company's annual sales between $25 and $50 million. Viking's joint ventures in São Paolo and Suzhou, China, were included in the sale.

In the past year Viking has invested more than $1 million in new equipment, including replacing five outdated injection presses with three new machines.

The company was named 2014 Employer of the Year for the economic development group DevelopErie for companies in the Erie, Pa., region. The privately-owned company employs 125 in the U.S.

Stout Risius Ross Inc. was the financial advisor to Viking for the sale.

"Viking's new ownership group brings a significant amount of industry expertise and resources to Viking, which is well-positioned for continued growth as a result of its strong management team, superior reputation in its end markets and entrenched relationships with key vendors and customers," said Michael Benson, managing director at SRR who led the sale.

Spell has extensive experience with plastics firms. Its current portfolio includes Atlas Wire LLC, a maker of PVC, nylon and cross-linked polyethylene insulated wires and it recently sold two plastics operations: pipe producer Midwest Plastic Products and Production Services Associates, a manufacturer of plastic gift cards.

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