Goldsmith Agio Helms Announces the Sale of the Rotational Molding Division of The Plastics Group, Inc.

MINNEAPOLIS, MINNESOTA:
Februrary 28, 2007: The Lower Mid-Market Group (“LMG”) of Goldsmith Agio Helms is pleased to announce the sale of the Rotational Molding Division (“RMC” or the “Company”) of The Plastics Group, Inc. (“TPG”), a Chicago-based portfolio company of Chicago Growth Partners.  RMC, a highly profitable Maple Plain, Minnesota based manufacturer of custom rotationally molded plastic products, was sold to Rotonics Manufacturing, Inc. (“Rotonics”) a portfolio holding of Minneapolis-based Spell Capital Partners, LLC.

TRANSACTION HIGHLIGHTS
Just prior to the acquisition of RMC, Spell Capital Partners purchased a controlling interest in Rotonics Manufacturing, Inc. (“Rotonics”), a rotational molding company that had been publicly traded.  RMC is an add-on acquisition. Rotonics offers a diverse product line to customers in the commercial, agricultural, refuse, pharmaceutical, marine, recreation, medical waste, healthcare, retail, recreation, and residential markets in the United States.  RMC will provide Rotonics with access to new end-markets such as defense, fluid management, commercial vehicles, cleaning equipment, and industrial equipment with its superior engineering and custom manufacturing expertise.
 
Brian Beth, CEO of The Plastics Group, said of the divestiture of TPG’s rotational molding division, “This divestiture allows us to focus on our core business of blow molding.  The superior financial results of our rotational molding business gave us the opportunity to realize a strong return on our investment and the additional financial resources to take advantage of growth and consolidation opportunities in the blow molding industry.”  

Added Mike Moore, CFO, “In selling RMC to Rotonics, which is focused on rotational molding, and its new owner, Minneapolis-based Spell Capital Partners, we believe that we’ve found a good home for RMC and its employees.”  

Goldsmith Agio Helms has completed more than 50 M&A assignments in the plastics industry.  Bill Jarrett, an LMG Managing Director, said, “The fragmented rotational molding industry is undergoing changes, as the result of a number of recent sales and acquisitions.  Last year, we sold another custom rotational molder (Elkhart Plastics) to a larger rotational molder which, like Rotonics, had recently been acquired by a financial buyer.  The sale of RMC will enable The Plastics Group to focus on aggressively growing its blow molding business.” 

THE COMPANY
RMC manufactures custom rotationally molded plastic products for a strong customer base that compete in a wide variety of industries, including defense, fluid management, commercial vehicles, cleaning equipment, and industrial equipment.  For over 50 years, the Company has been a leader in rotational molding and has differentiated itself from its competition by its engineering and manufacturing expertise and customer service.  Much of the Company’s superior engineering and manufacturing expertise is the result of its ability to work with a variety of resins to achieve stringent design requirements for its customers.

THE BUYER
Spell Capital Partners, LLC (www.spellcapital.com) is a private equity and buyout firm based in Minneapolis, Minnesota. They are engaged in the acquisition of controlling interests in well-managed, historically profitable manufacturing, distribution or service businesses.  The plastics industry is an industry of focus for Spell Capital Partners.

ABOUT GOLDSMITH AGIO HELMS
Goldsmith Agio Helms (www.agio.com) is one of the nation's leading independent investment banking firms providing sophisticated corporate finance advisory services  to middle-market businesses.  The firm's services include mergers and acquisitions, private placements of debt and equity, distressed advisory and restructuring, and financial advisory and opinion services.  The firm operates internationally from its offices in Minneapolis, New York, Chicago, Los Angeles, and London. 

The Lower Mid-Market Group works with clients across a broad range of industries in the lower mid-market, which is defined as companies with an estimated enterprise value of less than approximately $50 million.

If you would like more information about this transaction, contact Bill Jarrett (bjarrett@agio.com) at 612-339-0500.