P&M Corporate Finance Announces the Sale of Gage Industries’ Sheet Extrusion Business to Primex Plastics Corporation
Southfield, MI — P&M Corporate Finance (PMCF) served as financial advisor to Gage Industries, Inc. (Gage) in the sale of its sheet extrusion business to Primex Plastics Corporation (Primex). Gage’s sheet extrusion business manufactures custom ABS, polypropylene, polyethylene and PET sheet, serving the heavy truck, aftermarket automotive, consumer, technology, packaging and marine markets.
Primex is a recognized leader in the U.S. custom sheet extrusion market with over 100 processing lines in 11 manufacturing plants situated across the U.S. and England. “Gage’s product offering and customer base are a good fit with our organization,” said Mike Cramer, President of Primex. “This acquisition will allow us to leverage our strengths in manufacturing and distribution to enhance the value to Gage’s customers.” Primex plans to integrate Gage’s extrusion business with its Mesquite, Nevada facility following a transition period at Gage’s Lake Oswego, Oregon facility.
PMCF was engaged to sell two divisions of the company: the sheet extrusion business and the thermoformed packaging business. PMCF was selected by Gage because of its deep industry expertise in plastics and packaging, ability to move quickly, and track record of maximizing value in sale transactions. PMCF conducted a highly competitive sale process that allowed buyers to evaluate the divisions together or separately. The process resulted in a significant valuation premium to Gage by selling the divisions separately to two strategic buyers. PMCF was able to manage the two transactions in parallel and complete both transactions in just over 6 months. The packaging business was sold to Sabert Corporation on July 1, 2008 and the sheet extrusion business was sold to Primex on July 18, 2008.
View announcement of Gage Industries’ packaging business sale to Sabert Corporation.
About P&M Corporate Finance
P&M Corporate Finance is a middle market investment bank providing merger and acquisition advisory services to companies in North America and Europe. PMCF provides a broad range of services including sale advisory, acquisition advisory, capital raising and strategic advisory. The firm has dedicated industry teams providing services to the plastics and packaging, life sciences, industrials, and business services industries. PMCF has offices in Chicago, Cleveland, and Detroit.