Molded Devices adds Northeast U.S., Asia capacity with Seitz purchase

TORRINGTON, Conn.—Molded Devices Inc. is adding manufacturing muscle in both the Northeast and China through the purchase of Seitz L.L.C.

The plastics parts maker is significantly increasing injection molding capacity through the deal, MDI CEO Jack Slinger said in a Nov. 17 interview.

That includes about 30 to 40 injection molding machines in Torrington, Conn., and more than 30 machines in Jiangsu, China, he said.

Seitz does about half of its business in the medical device market and about half in what Slinger called the niche industrial market. MDI has a similar mix.

Terms of the acquisition were not revealed, but Slinger gave some perspective on how his company looks to continue to grow each year.

This is the second acquisition for MDI in 2021 following January's purchase of Phoenix Manufacturing of Milton, Ontario. The company typically makes at least one acquisition each year and now operates more than 100 injection molding machines.

"The medical contract manufacturing space, it's very fragmented. I think it's definitely open to consolidation and acquisition. Where we've tried to be very acquisitive is either in adding a manufacturing technology we do not have that would increase our share with our customers and grow our business with our customers or we try to get more scale in a manufacturing technology we already possess. For example, the Seitz acquisition is strictly injection molding and assembly," Slinger explained.

MDI now has a dozen locations in the United States and one each in Canada, Mexico and China. The company's site in North Canton, Ohio, that makes dip molded latex products primarily for the medical industry.

Employment has grown to more than 800 employees, including more than 100 at the new location in Connecticut and less than 100 in China. The new Torrington location gives the firm added capacity in the Northeast to complement existing operations at the company's headquarters in Tempe, Ariz. MDI also has existing site in the Northeast in Jaffrey, N.H., that Slinger described as being much smaller.

Along with injection molding on the plastics side, the company also provides extrusion, blow molding, dip molding, dip coating, powder coating and assembly services.

Seitz fits MDI's model of providing highly engineered, highly technical products, the CEO said. "They are not just a shoot-and-ship injection molder. They are high-tolerance, niche injection molders. Their biggest focus is on plastic gears and assemblies that those gears would go in."

Common uses for those gears include pumps and robotic surgery equipment.

The company is backed by PNC Mezzanine Capital of Pittsburgh, which not only provides funding for growth but also has an ownership stake in the firm.

"With this acquisition, MDI will enhance its position in the medical market space while expanding into new custom molding applications, like precision gear assemblies, both in the USA and Asia," said PNC Mezzanine Capital Partner Doug Brosius in a statement.