In December 2010, Socius provided junior capital to support the growth and acquisition objectives for Intertech Plastics and its sister company, Twist Body Brands. Intertech Plastics is a leading, Denver based plastics injection molder, with a particular emphasis on high tonnage, long run, large, inefficient-to-ship products.
Over its history, the business has developed core competencies in injection molding, blow molding, contract assembly, pad printing, and fulfillment services. Intertech serves customers in the consumer, industrial, electronic and automotive industries. While the contract manufacturing, injection molding business can be extremely competitive, we were attracted to the opportunity by a strong and long tenured management team and a dominant position in its regional market that provided clear cost advantages over potential competitors.
The company had just received a substantial long-term contract to supply a number of big box retailers with a variety of low cost and difficult-to-ship products such as garbage bins, laundry baskets and storage units. Intertech turned to Socius to provide the financing to support the growth in working capital.
Our investment was structured in the form of subordinated debt with a warrant to purchase common stock. The company successfully executed on its plan and was ultimately able to secure additional senior debt on more favorable terms. We exited in 2012 after having our capital retired with an attractive return to our investors.