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IPEG Acquires Pelletron

PEG Inc. has acquired Pelletron Corp.
PEG Inc. has acquired Pelletron Corp.

IPEG Inc., with subsidiaries serving the plastics-processing, waste-recycling, and industrial heat-transfer markets, has acquired Pelletron Corp., a leading supplier of pneumatic conveying systems, dust removal systems, and other related products.

The company will operate as an independent subsidiary at its existing location in Lancaster, PA. Financial terms are not being disclosed.
Headquartered in Cranberry Township, PA, IPEG is parent to Conair, a leading global manufacturer of auxiliary equipment for plastics processing, which also designs and sells material conveying systems. However, IPEG CEO Chris Keller says the two companies are not competitors. “Whereas Conair offers vacuum-based systems that might convey hundreds or thousands of pounds per hour, Pelletron offers pressure-driven systems that are used by resin producers to handle thousands and tens of thousands of pounds per hour. There is virtually no overlap,” said Keller.

Founded in 1987, Pelletron has been operated by Heinz Schneider and Paul Wagner since 2003, and owned by them since 2008. The two will remain in their current roles of president and vice president. All other employees are also expected to remain with the company. Keller says the company will continue to operate from its present location in Lancaster, PA, about 80 miles west of Philadelphia.

Pelletron focuses on design and engineering, with numerous patents for products such as pellecon3, a new smart and economical conveying process, DeDuster systems to remove dust and streamers from conveyed materials, and the Pellbow, a patented elbow for conveying piping that prevents pellet damage and equipment wear in high-velocity conveying and abrasive material applications.

“There is potential for Conair to source some equipment from Pelletron and vice versa,” Keller said. “However, our primary focus is to help Pelletron grow doing what they do best, engineering high-throughput pneumatic conveying systems. Part of our growth strategy is to acquire solid companies, give them autonomy, and invest in their growth. This is no different.”

IPEG ownership will give Pelletron desired financial strength to handle large projects that can run into the millions of dollars. “Our growth has been limited by our size, not by our know-how or capability,” said Schneider. “With the strong financial backing and global footprint of IPEG, which is much larger than Pelletron, our customers will be able to have more confidence in our ability to handle these larger projects.”

Pelletron has a European subsidiary, pelletroneurope GmbH, located in Bodnegg, Germany, and distributors and partners around the world.  

IPEG comprises a family of leading brands serving the global plastics-processing, waste-recycling, and industrial heat-transfer markets. In addition to Conair, IPEG brands include: Thermal Care, a leading manufacturer of process cooling solutions for industrial applications worldwide; Republic Machine, a leader in the design and manufacture of single-shaft shredders for recycling of plastics and other materials; and now Pelletron Corp.

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