NEWS

David Ehrenfest Steinglass, Managing Director (301) 951-6122
Brian Maney, Director, Corporate Communications (301) 951-6122

By Maureen Flanagan

Founded In 1953 by two MIT professors, Franklin, MA headquartered Dynisco was the first to design a transducer specifically to measure the melt pressure of plastic during manufacturing. With this innovation the company developed measurement and control devices for a wide range of plastics manufacturing processes. It also expanded into Europe and Asia and acquired new product lines, catapulting Dynisco into a leading global market position.

In a July 12, 2004 buyout, Dynisco was purchased by Audax Private Equity, a Boston-based firm. To support the acquisition, American Capital Strategies, Ltd. (Nasdaq: ACAS) provided $15 million in senior subordinated debt and junior subordinated debt with warrants. Antares Capital provided the revolving credit facility and senior term loans. An affiliate of Madison Capital Partners will retain seller notes as part of the transaction.

"Dynisco has emerged from an industry trough more robust than ever," said Larry Klumpp, the company's President and CEO. "With increased outsourcing, reduced operating costs, enhanced customer service and product redesigns, we are ready to embrace our growing market opportunities."

Used in high-use, high-wear conditions, Dynisco's measurement and control devices, or sensors, are essential for maintaining efficient, quality production of plastic and other products. Dynisco also produces transducers and transmitters for hydraulic and industrial applications. In addition, the company makes indicators and controllers such as electrical power supplies, analog and digital indicators, recorders, voltage-to-current converters and controllers for displaying and using data collected by transducers.

Dynisco's extrusion auxiliary equipment, marketed under Dynisco and Beringer brands, includes gear pumps, screen changers and other equipment that manage and control the flow of materials during manufacturing. These are used for resin production, the manufacturing of extruded products and extrusion applications in the production of food products, rubber and adhesives.

The company also offers polymer test devices to test the physical and chemical properties of plastics in labs and in on-line resin production processes. Properties measured include viscosity and flow of molten plastic, temperatures and pressures at which plastics melt, flexibility, flammability and impact resistance.

Dynisco sells its products to OEMs that use Dynisco's products in new machines as well as to resin producers and end users served directly by Dynisco. The company also sells to distributors who form a critical element of Dynisco's repair and replacement business by ensuring customers 24-hour worldwide access to critical parts.

In the July 2004 buyout, Antares Capital provided a revolving credit facility and senior financing alongside American Capital's subordinated debt investment and seller notes held by an affiliate of Madison Capital Partners. Audax Private Equity invested in common equity and Audax Mezzanine invested in senior subordinated debt.

Since 1997 American Capital has invested more than $3 billion in the middle market and manages a portfolio that currently includes 100 companies. For more information about American Capital's portfolio click here.

After a severe downturn in the early 2000s, the plastics processing industry is poised for recovery. The growth is driven by continuing efforts of manufacturers to increase quality and efficiency while they reduce manufacturing costs. Dynisco's test and measurement equipment is increasingly popular because it allows for better control of variability during manufacturing. Decreasing variability is of key importance as products become more advanced with even tighter tolerances.

While Dynisco has focused on test and measurement for plastics processes, the technology is applicable in other industries as well. The company is currently working with customers in the chemicals, oil and gas, rubber, food processing and medical industries. To that end, Dynisco is pursuing acquisitions that could allow it to further leverage its technology.

Dynisco is also committed to developing new technologies. The company has streamlined its development process and reduced the time needed to bring new products to the market. In 2003, it introduced 14 new products and expects to introduce more in the years to come. Dynisco also plans to grow its presence in international markets as plastic processing moves to Asia and becomes more technical and precise.

With new ownership, leading products in a market on the upswing and plentiful opportunities, Dynisco is leading the market as a plastics processing dynamo.