Genesis Capital Advises Polytek Development Corp. on its Merger with California Medical Innovations

Genesis Capital Advises Polytek Development Corp. on its Merger with California Medical Innovations

Genesis Capital is pleased to announce that Polytek Development Corp. (“Polytek”), a portfolio company of MPE Partners (“MPE”), has merged with California Medical Innovations (“CMI”), a family-owned, custom formulator and compounder of natural rubber latex, plastisols, and thermoplastic elastomers, to form a nationally integrated specialty chemicals provider.

Jonathan Kane, CEO of Polytek, said “Genesis Capital worked alongside our team to refine the scope and strategy of our acquisition growth initiatives.  Genesis Capital identified CMI, initiated the transaction and provided invaluable advice and expertise throughout the process to ensure a successful closing of the transaction.”

MPE and Polytek partnered in the transaction with the Nathie Family including Founder Yousof Nathie and President Danny Nathie who will both serve on the combined company’s Board of Directors.  Jonathan Kane will serve as the CEO of the combined company.

Jonathan Kane added, “the merger of the two companies creates a portfolio of products for our industries, unmatched by any competitor in the world, with a coast to coast presence that allows us to respond more quickly than ever before. Combined with our shared culture of customer service, technical support and innovation, we are poised to offer customers the best material solutions in the world.”

Graham Schena, Principal at MPE, said, “We are excited to bring together two companies with talented management teams, as well as complementary product offerings, formulation capabilities, and process knowledge.”

Yousof Nathie, Founder of CMI added, “We are very excited to partner with Polytek and MPE and believe they will be great stewards for the combined enterprise.  The combined portfolio of products offered will bring additional value to the solutions we can bring to our customers.”

Genesis Capital, LLC acted as financial advisor to Polytek and Baker Hostetler provided legal counsel. Madison Capital Funding LLC, Polytek’s existing lenders, provided debt financing in support of the acquisition.

About Polytek Development Corp.
Headquartered in Easton, Pennsylvania, Polytek Development Corp. (“Polytek”) manufactures the most complete and versatile line of liquid mold rubbers, casting plastics, resins, and foams, as well as other specialty molding and casting materials. The Company has expertise in both polyurethane and silicone chemistries. Customers rely on Polytek products and technical support to accurately mold and reproduce parts quickly, consistently, and cost-effectively.

About California Medical Innovations
Headquartered in Pomona, California, California Medical Innovations (“CMI”) custom formulates and compounds natural rubber latex, plastisols (“PVCs”) and thermoplastic elastomers (“TPEs”). CMI has over 35 years of experience in the custom compounding field serving a variety of industries with endless application possibilities. CMI has the knowledge, the personnel and the equipment to customize each formulation precisely to the customer’s desired specifications. Compounds can be made in any color (including clear) or durometer (hardness). Non-phthalate and bio-based compounds are also available.

About Morgenthaler Private Equity
MPE Partners (“MPE” or “Morgenthaler Private Equity”) seeks to be the preferred partner for entrepreneur- and family-owned companies.  Based in Cleveland, OH, and Boston, MA, MPE invests in profitable, lower middle market companies with EBITDA between $5 – $20 million.  MPE has two primary target investment areas: high-value manufacturing and industrial services.

Company Type: Family-Owned Businesses, Private Companies

Transasction Type: Buyside M&A

Industry: Industrial Manufacturing