Page 24 - Plastics News April 2018

CompAny news

SONGWON begins large scale Platinum Equity Completes

manufacture of functional Acquisition of Husky Injection
monomers Molding Systems

aving started to develop functional monomers latinum Equity has completed the acquisition of
Habout two years ago, SONGWON has now begun bulk PHusky Injection Molding Systems, a leading global
manufacture at its production site in Ulsan, South Korea. supplier of injection molding equipment and services to
These monomers provide resins and polymers with special the plastics industry, from Berkshire Partners and OMERS
functions, one of the most important being improvement Private Equity for $3.85 billion. Based in Bolton, Ontario,
of the physical and chemical properties of the final Husky is a global supplier of highly engineered injection
product. Applications include resins, sealants, adhesives molding equipment and services for the plastic injection
and engineering plastics molding equipment industry, and a leading provider of
designed for use in PET systems, hot runners, aftermarket tooling, medical
coatings, the automotive molds, and specialty closure molds. Husky’s state-of-the-
sector and electronic art manufacturing equipment is delivered to a wide range
packaging. of customers in various end-markets with approximately
“With this new capacity, 70% of its sales generated outside North America. In
our production site in addition to complete injection molding solutions, Husky
Ulsan can now supply provides aftermarket services and parts to a large and
medium volumes of growing installed base of systems globally. It invests
specialized monomers at significantly in new product development to serve both its
competitive prices. Subsequent development of further core beverage packaging and adjacent market customers.
products at our Technology Innovation Center and scaling John Galt, who has served as Husky CEO since 2005, is
up of production will allow us to follow the market’s staying on to lead the business. He and other members
of Husky’s management team remain important investors
technology roadmaps,” said Heinrich Schulte, Leader in the company. Financing was arranged by certain
Market Center Functional Monomers.The first functional affiliates of Bank of America Merrill Lynch, Deutsche
monomers manufactured in Ulsan are dicyclopentadiene Bank Securities, Goldman, Sachs & Co., Barclays, BMO
(DCPD) phenol oligomers (known in the industry as ERM- Capital Markets, TD Securities, and National Bank of
6085 and ERM-6140, for example, depending on softening Canada Financials Markets.
point) and bisphenol trimethylcyclohexane (BP-TMC).
DCPD functions mainly as an epoxy resin modifier in
chain extending reactions and is primarily used in the
manufacture of epoxy composites. The softening point
and functionality of DCPD phenol resins can be widely
varied and these products are therefore ideally suited
to serve the growing market for special epoxy resins
that exhibit high dielectric constants and low dissipation
factors at high frequencies. They are, for instance,
used for wiring boards and packaging material that can
meet the new 5G transmission standard requirements. Latham & Watkins, Stikeman Elliott and Baker McKenzie
SONGWON’s standard grade BP-TMC monomer is available served as legal counsel to Platinum Equity on the
for use in epoxy or epoxy novolac resins, while the high acquisition of Husky, and Husky was represented by Weil,
purity grades are designed for high impact, transparent Gotshal & Manges LLP and Torys LLP. Founded in 1995
polycarbonate.Building on more than 20 years of expertise by Tom Gores, Platinum Equity is a global investment
in the production and modification of products based on firm with $13 billion of assets under management and a
phenol chemistry, SONGWON will continue to develop new portfolio of more than 30 operating companies that serve
functional monomers and manufacture them in Ulsan. customers around the world.

Plastics News April 2018 24