Seventh District Holdings purchases custom injection moldings operation
LEXINGTON, Ky. (Feb. 27, 2013) – Custom injection moldings operation Blue Star Plastics Inc. of Lexington has been purchased by a subsidiary of an international business operation controlled by Ahmad Hamza and his son Mohammed Hamza.
Investment banker Corporate Finance Associates of Lexington today announced the sale to Seventh District Holdings LLC, a subsidiary of Seventh District Capital, which is owned and led by the Hamzas.
Seventh District is a family-run international operation with business connections in Europe, the Middle East and the United States. Mohammed Hamza, director of Seventh District Holdings, will be moving to Lexington to assume leadership of Blue Star Plastics.
Details of the transaction are confidential. Information on Seventh District’s other business operations was not released.
The transaction was closed Dec. 31 in Lexington by the shareholders of Blue Star Plastics and the principal owner of Seventh District Holdings.
Blue Star Plastics, located on Nandino Boulevard, was founded in 1984 by Roger Storch and Don Keim, both former executives with Texas Instruments. Blue Star Plastics specializes in custom injection molding of thermoplastic components and contract manufacturing of plastic assembled products. The company has 50 employees.
“Don (Keim) and I will be staying on in an advisory and training/transitioning capacity up to 6 months,” said Storch, who was CEO. “After that, we will still be somewhat connected for a couple of years. We plan to ensure a smooth transition of ownership to the Hamzas.”
The timing was right for the founders to sell, Storch said.
“Blue Star grew 25 percent last year and should exceed that this year,” he said. “Continued growth requires additional investment, and the Hamza family is prepared to take the necessary steps for Blue Star Plastics to reach the next level. This is great news for our people, customers, and the Lexington community.”
Investing in Blue Star Plastics fit ideally into Seventh District Holdings’ investment strategy, Ahmad Hamza said.
“They have a strong business concept, a long established successful track record, an excellent customer and supplier base, quality products and a highly professional management team,” he said. “Lexington, Ky., is an ideal location for our first venture in the United States and one from which we can grow.”
Continuing to serve existing and new customers is top priority, Mohammed Hamza said.
“We view this as a long-term investment with the objective of growing the business successfully into its next phase while adding value to our customers, suppliers and the community along the way,” he said.