Key Takeaways
- • MCM Capital Partners exited its 6.5-year investment in Performance Plastics, a precision injection molder of engineered thermoplastics, achieving an attractive outcome for the fund, its shareholders, and the portfolio company's management team.
- • Performance Plastics doubled revenues and more than doubled EBITDA during MCM's ownership period, demonstrating significant operational value creation through strategic sales and marketing development.
- • MCM's value creation strategy focused on addressing PPL's historical underinvestment in business development by building a dedicated sales and marketing function from scratch, including recruiting a new VP of Sales and Marketing and adding two full-time sales professionals.
- • The portfolio company expanded its operational capacity by adding six engineers, an Operations Manager, and a Quality Manager to support revenue growth and enhance its positioning as a solutions provider in high-value thermoplastic applications.
- • MCM acquired PPL in 2015 as a direct sourcing effort targeting manufacturers with differentiated capabilities in processing highly engineered thermoplastic resins serving growing, high-value end markets.
Summary
MCM Capital Partners, a lower middle market private equity fund, has announced the successful exit of Performance Plastics, a precision injection molder specializing in highly engineered thermoplastics. The sale, which concludes a 6.5-year partnership beginning in 2015, resulted in what MCM characterizes as an attractive outcome for its fund, shareholders, and the portfolio company's management team. During the holding period, Performance Plastics doubled revenues while more than doubling EBITDA, demonstrating substantial operational improvement and value creation.
MCM's acquisition of Performance Plastics in 2015 was part of a direct sourcing initiative targeting manufacturers with differentiated technical capabilities in processing highly engineered thermoplastic resins. At the time of acquisition, the company represented a classic lower middle market opportunity: it possessed specialized expertise and served growing, high-value end markets but had not fully realized its potential due to underinvestment in sales and marketing functions. The company's new program pipeline was described as underwhelming, indicating significant upside opportunity through commercial development.
The MCM team's value creation approach directly addressed these operational gaps. MCM implemented a comprehensive strategic marketing overhaul that included website redesign, digital marketing programs, and repositioning Performance Plastics as a solutions provider for customers' most challenging thermoplastic components. Critically, MCM recruited a Vice President of Sales and Marketing—a position that did not exist prior to MCM's ownership—and subsequently added two full-time sales and marketing professionals. To support the resulting revenue growth, the company expanded its engineering team by six members and added an Operations Manager and Quality Manager. Mark Mansour, Senior Managing Partner at MCM Capital, noted that the partnership demonstrated "how MCM can work closely with our portfolio teams to drive positive change" through strategic development of sustainable growth initiatives targeting high-value applications.
MCM's acquisition of Performance Plastics in 2015 was part of a direct sourcing initiative targeting manufacturers with differentiated technical capabilities in processing highly engineered thermoplastic resins. At the time of acquisition, the company represented a classic lower middle market opportunity: it possessed specialized expertise and served growing, high-value end markets but had not fully realized its potential due to underinvestment in sales and marketing functions. The company's new program pipeline was described as underwhelming, indicating significant upside opportunity through commercial development.
The MCM team's value creation approach directly addressed these operational gaps. MCM implemented a comprehensive strategic marketing overhaul that included website redesign, digital marketing programs, and repositioning Performance Plastics as a solutions provider for customers' most challenging thermoplastic components. Critically, MCM recruited a Vice President of Sales and Marketing—a position that did not exist prior to MCM's ownership—and subsequently added two full-time sales and marketing professionals. To support the resulting revenue growth, the company expanded its engineering team by six members and added an Operations Manager and Quality Manager. Mark Mansour, Senior Managing Partner at MCM Capital, noted that the partnership demonstrated "how MCM can work closely with our portfolio teams to drive positive change" through strategic development of sustainable growth initiatives targeting high-value applications.
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