Core Molding Technologies acquires CPI Binani

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  • Acquisition of direct long-fiber thermoplastics (D-LFT) producer
  • CPI Binani: $20 million sales, 100 employees, 7,710 sqm facility
  • D-LFT market to grow at a CAGR of 7-9%

Core Molding Technologies, Inc., a leading North American compounder of custom sheet molding compound (SMC) and molder of fiberglass reinforced plastics, has acquired substantially all of the assets of CPI Binani, Inc. located in Winona, Minnesota. CPI is producer of direct long-fiber thermoplastics (D-LFT) products, serving the marine, automotive, packaging and other industries.

CPI Binani: $20 million sales, 100 employees, 7,710 sqm facility

CPI was previously a wholly-owned subsidiary of Binani Industries Limited, based in Mumbai, India and had annual sales in 2014 of approximately $20 million. The transaction is an all-cash deal of $15 million. The acquisition includes a staff of approximately 100 individuals and a manufacturing facility of 7,710 square meter (83,000 square feet).

D-LFT market to grow at CAGR of 7-9%

Long-fiber reinforced thermoplastics systems are chemical resistant and recyclable. The use of a direct process, where the compounding of the material is connected directly with the compression molding operation, improves the economics of the technology. Widely popular in Europe and Asia, D-LFT technology is still growing in North America, where applications are concentrated in the automotive industry, but include many non-automotive applications as well. Lucintel, a leading market research organization that specializes in composite processes, estimates the North American D-LFT market is growing at a CAGR of 7-9%.

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