Heico boosts its Davies Molding business with Versatile acquisition | Plastics News

Oct 14, 2024

Heico Cos. LLC of Chicago has acquired family-owned Versatile Mold and Design Inc. of Rutledge, Ga., in an all-stock transaction to add tooling capabilities and complement the operations of Heico's Davies Molding segment.

Founded in 1979, Heico is the parent holding company for a portfolio of manufacturing, construction and industrial businesses, including Davies Molding, a 90-year-old operation that produces plastic knobs, handles, cases and grommets and is part of its Industrial Technologies Group.

Davies staff has been partnering with Versatile staff to build its complex tooling for about four years, according to Derran Smith, vice president of commercial operations and strategy for Heico's industrial technologies group.

Smith, the former president of Davies Molding, is leading the integration of Versatile Mold & Design into Heico's plastics segment.

"Given more work was going to Versatile, we thought it would be fantastic to purchase them and continue the growth," Smith said in a phone interview. "There are lots of opportunities here to expand both Versatile and Davies capabilities and really create a solid synergy between the two."

The biggest opportunities are related to upgrading the electrical grid "from substations to electric vehicles," Smith said.

"The materials we mold and the tools they build really are aligned in that space," he added.

Terms of the deal were not disclosed.

Versatile has about 40 employees and all will be retained to perform the same duties.

"It's a good-size tool shop and they also do some molding," Smith said.

Versatile runs two shifts in its molding department, which is equipped with 11 injection molding machines, seven compression molding machines and grinders, saws, micro- welding and inspection equipment.

Founded in 1998 and operated by the Heusser family, Versatile also builds molds for thermoplastic and thermoset materials and offers prototype tooling, 3D printing, mold sampling, spare parts programs and high-speed laser measuring.

The combination of Versatile and Davies Molding, which is based in Carol Stream, Ill., will provide end-to-end turnkey services for domestic and offshore production, Smith said.

"Reshoring is one of the reasons we've made this investment. We've seen a strong influx of reshoring as well as growth in the electrical space," he said, pointing also to redundant tools.

"[Processors] keep one tool in China and one in the U.S. to keep up with demand. With the supply chain disruptions during COVID people definitely want those closer to home and we're seeing a huge uptick in quoting volume for this kind of work."

Barbara Philibert, president and CEO of the industrial technologies group, said in a news release: "Versatile Mold and Design's commitment to innovation and excellence aligns seamlessly with our vision. This union amplifies our capabilities, empowering us to deliver cutting-edge solutions across every phase of the molding process."

Versatile officials said the deal brings a partner in Davies Molding that will allow it to fully service international customers.

"Heico brings world class technology, resources and processes that we can utilize to continue our growth," Versatile Mold and Design President Bob Heusser said in the release.

Heico remains in acquisition mode should the right company come along.

"The Heico Cos. continue to invest in this segment and we're on the lookout for other similar companies that fit with our strategic plan," Smith said. "It could be tooling or thermoset molding or thermoset materials. We're open to options."

Founded by Michael Heisley, Heico now has more than 9,000 employees and more than 80 operating companies on five continents. The parent company most recently generated sales of $2.5 billion, the Heico website says.

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