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By Maureen Flanagan
Weber Manufacturing Limited is a designer and manufacturer of highly customized specialty molds and precision products. Based in Midland, Ontario, the company designs and manufactures nickel shell molds, traditional injection and compression steel molds and prototype aluminum molds. It is the only company in the world that uses the superior technology of nickel vapor deposition (NVD) to produce complex nickel shell molds. Focused on high-precision, complex molds in the high-end plastic mold industry, the company serves international customers in the automotive, aerospace, and residential housing markets.
In an October 7, 2004 buyout, Weber was acquired by American Capital Strategies, Ltd. (Nasdaq: ACAS) and TMB Industries, a private equity firm based in Chicago. American Capital provided a $24 million financing package consisting of senior subordinated debt and equity.
"Weber is positioned to pursue a wealth of opportunities afforded by its unique technology for forming mold cavities from pure nickel. Moving forward, the company anticipates NVD molds to be the fastest growing component of its sales as it pursues new opportunities and expands into new markets," said Tom Gregory, American Capital Managing Director. Reinhart Weber founded the company in 1962 and led it throughout a successful history of more than 40 years. In 2000, Weber combined its traditional mold making capabilities with development of exceptional proprietary processes to apply and commercialize the NVD process. This process involves transforming nickel into gas, and then condensing it back into solid form as it collects on the mandrel (the form for the tool) until it reaches the proper thickness.
The NVD process supports the production of mold cavities with unusual and demanding surface properties that represent best-in-class technology. Among other significant advantages, NVD nickel shell molds can be produced twenty times faster and are stronger, lighter and more precise (leading to superior surface textures). Unlike traditional electroformed molds, NVD molds cannot de-laminate in service and consequently have a longer life.
Weber specializes in large and complex molds that require premium "Class A" surfaces. These include molds for painted exterior panels, such as sheet molded compounds (SMCs); textured interior panels (including door and arm-rest trim panels), and complex molds with critical aesthetics, intricate shapes and tight tolerances for mating parts (such as instrument panels). Finished parts like these require complex mold designs with flawless surfaces to meet quality expectations of automotive, truck and aerospace OEM customers. Weber also manufactures nickel molds for sinks and bathtubs for the kitchen and bath markets and high-end front entry doors and other building products for residential construction.
In the October 2004 buyout, Bank of Nova Scotia provided senior debt financing alongside American Capital's investment. American Capital's equity partner, TMB, currently has investments in more than 30 businesses with revenues totaling approximately $700 million, including Phillips & Temro Industries, a highly successful American Capital portfolio company and co-investment.
For more information about American Capital's portfolio click here. Since 1997 American Capital has invested more than $3 billion in the middle market and currently has investments in more than 100 portfolio companies.
As the benefits of the NVD process become more widely appreciated, the company is in a strong position to capture market share from other tooling methods. NVD tools have quality and cost advantages over steel and aluminum tools which make the process an attractive option for many manufacturers. NVD is also positioned to become a significant fabrication technology for nickel products in previously unserved markets. The company looks forward to ramping up marketing and expanding its sales effort to pursue new customers and markets.
There are also plentiful opportunities in Weber's current end-market channels. Weber expects increasing penetration of the heavy truck and aerospace segments since these customers often know very little about NVD's advantages. Heavy demand for tooling is expected in the coming years as truck companies prepare their platforms to meet new fuel emissions standards that take effect in 2007 and 2010. Other customers are also prime candidates for the NVD process.
Weber's NVD process is potentially useful for numerous new applications as well. The proprietary process used for faux wood exterior doors can be used to make SMC components for automotive and heavy truck interiors, building products and recreational marine use. In addition, the company is exploring uses beyond mold making that will enhance and diversify Weber's business portfolio. Additional end market applications include reflective and microstructured optics; nuclear, chemical and power systems; and munitions and aerospace products.
As it moves forward, the company is on the cusp of exciting uses, markets and opportunities with its new NVD technology. Weber is indeed molding a bright future.
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