Design Molded Plastics: Custom Plastic Injection Molder

Design Molded Plastics: Custom Plastic Injection Molder

Design Molded Plastics is a custom injection molder serving customers in the appliance, consumer goods, industrial and automotive industries and operates 35 plastic injection molding presses from 88 tons up to 950 tons, including two shot molding capabilities, vertical molding, In-mold labeling and sub-assembly capabilities in 150,000 square feet of production and distribution.

Despite the financial and operational challenges facing the business, the management team at Big Shoulders Capital saw an opportunity to help save this business, support its more than 50 employees and give it the best chance to thrive again. In addition to operational improvements, management restructuring, and overhead alignment, the growth strategy includes a focus on external sales, improved existing customer relationship management and bolt-on acquisitions of other injection molding companies.

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MOD Interiors: An Addition to our Savannah Platform

MOD Interiors: An addition to our Savannah platform

MOD Interiors is a high-end provider of architectural millwork, north of Detroit. The owner was looking to de-risk, but was still committed to business. So Big Shoulders partnered with Iroquois Industrial to acquire the company, and have it work synergistically with Savannah Industrial Solutions. MOD continues to operate independently, with no loss of jobs.

By bringing MOD Interiors and Savannah into partnership, each firm can bid on and execute larger portions of projects than they would be able to individually. MOD will be able to utilize the metalwork, stonework and high-volume woodworking capabilities of Savannah, and Savannah will be able to serve its customers with MOD’s high-end millworking capabilities, for which they won the Architectural Woodwork Institute's Standard of Excellence.

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The bank saw a liquidation - we saw an investment

The bank saw a liquidation, we saw an investment

After revenues declined by 30% over two years and EBIDTA turned negative, the lender for Benda Conveyor Solutions cut funding and initiated foreclosure in November 2021. By January 2022, most employees had been laid off, payrolls were missed, and the company was days away from permanent closure.

The bank brought it to BSC as a liquidation deal, but we saw value, quickly diligenced and ultimately purchased Benda as a going concern a month later, along with our partner, Iroquois Industrial Group.

The lender enjoyed a full recovery, 23 jobs were saved, and we plan to expand into other markets and leverage synergies with our other portfolio companies.

DRS Industries Case Study

We invested in a manufacturing company, and its employees.

DRS Industries, an Ohio-based tool manufacturer and custom injection molding company had large clients and a sterling reputation. Yet its passive investors were unwilling to fund operations and put the company into receivership. We stepped in, forming a new entity to purchase and operate DRS. We not only saved 35 jobs, but now, with a new infusion of capital, we are preparing to expand production.

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Savannah Industrial Solutions

A company is saved, along with more than 100 jobs.

Savannah Industrial Solutions manufactures metal and wood products for the restaurant, food service, healthcare, telecom and municipal markets. A private equity group purchased the company, but the resulting debt burden was more than operations could support. At BSC, we saw great potential in their business and the skills and talent of its employees. So we formed a joint venture to purchase the company’s assets, confident that if we invested in Savannah’s people, we could create real value for its customers.

In 2021, we invested $1MM in a new semi-automated, five-stage powder-coat paint line.

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Lyon

We held the key to saving this metal locker manufacturer.

A leading manufacturer of top-quality metal lockers and industrial storage products in Illinois was forced to declare bankruptcy despite $75M in annual revenues. We recognized their value, purchased the company out of bankruptcy, and brought on an operating partner to steer it in a new, better direction. We exited almost exactly one year later with their profits—and future—stabilized.

Benada Aluminum Products, LLC

We put the pedal to the metal in turning around this aluminum extrusion company.

An aluminum products producer located in Central Florida and with annual revenues of $100M, was facing a time of transition—its private equity owner was fatigued, leaving the company in limbo. Working with existing leadership, Big Shoulders Capital and our operating partner stepped in to purchase the company, secured by its considerable collateral, including real estate. At the time, the company’s EBITDA was negative. We recruited an industry leader to orchestrate a turnaround, and the company remains a profitable part of our portfolio today.

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Anderson Manufacturing

We unlocked the profit potential of this fastener manufacturer.

A private equity firm bought a Wisconsin-located manufacturer of fasteners and rivets serving the automotive industry. Unfortunately, the PE group began facing challenges, so BSC stepped in and purchased the company through a bank process. We then convinced the former management team, which had since left the company, to return. After rightsizing the business to ensure sustainability, BSC was approached by an international strategic buyer who is operating the business today.

LB Steel

We stepped up to the plate to rescue this steel plate fabrication company.

A firm that fabricated steel plates for the construction, agricultural, mini-equipment and power generation industries had revenues of $40M per year. But a judgment after years of costly litigation sent them into bankruptcy. BSC was the winning bidder at their bankruptcy auction, and formed a new company: LB Metals, LLC. After successfully stabilizing the company, we sold our interest to a strategic buyer who is running the company today.