Rotonics plants get new owners

By Bill Bregar
Senior Staff Reporter

Published: February 29, 2012 6:00 am ET

Related to this story

Topics Mergers & Acquisitions, Rotomolding, Thermoforming

MINNEAPOLIS (Feb. 29, 5:50 p.m. ET) — All three molding plants of the financially troubled Rotonics Manufacturing Inc. will get new owners, under deals announced Feb. 29 with Snyder Industries Inc. and American Custom Rotomolding, a sister company of Canadian processor Acrylon Plastics Inc.

Snyder has signed a letter of intent to buy rotational molding plants in Commerce City, Colo., and Bensenville, Ill. Snyder also will acquire the marketing and design operations in Indianapolis.

American Custom Rotomolding will acquire the Rotonics plant in Maple Plain, Minn.

Snyder and ACR issued Feb. 29 news releases with similar wording, saying they plan to keep all the facilities open with current employees. Both announcements termed the deals asset purchase agreements.

Terms were not disclosed.

Both deals are expected to close on March 9.

Rotonics makes a range of rotationally molded products, such as pallets, material handling bins, laundry carts, marine floatation devices and medical waste containers.

Rotonics’ struggles came to light on Jan. 18, when the company posted legal documents on its website seeking a sale or liquidation to pay creditors. A report by trustee James Cullen showed Rotonics had $21.3 million in assets and $53.1 million in liabilities — most from $41 million in secured loans — as of Dec. 31. The balance sheet does not list creditors.

The documents list Randall Patterson as Rotonics’ sole stockholder.

Cullen declined to identify the main creditor, but said the lender provided short-term financing and continued to make payroll. The factories remained open.

Cullen is a turnaround advisor at Alliance Management in Minneapolis, which works with troubled companies.

In the trust agreement, Cullen had said that his goal was to sell the factories as ongoing operations. Now both new owners are pledging to keep the plants running and make a smooth transition for employees and customers. Snyder and American Custom Rotomolding both will take over inventory, accounts receivables, work in progress and customer delivery requirements once the deals close.

Acrylon optimistic about US manufacturing

American Custom Rotomolding is newly formed entity. Its sister company, Winnipeg, Manitoba-based Acrylon Plastics, operates three rotational molding plants and two extrusion plants. Acrylon also does thermoforming in one of the rotomolding plants.

Stephan Segal, vice president of American Custom Rotomolding, said the economic upswing made this a good time to buy and continue to run the Maple Plain plant.

“We’re optimistic about U.S. manufacturing,” Segal said in a telephone interview. “There will be no interruption to the customer base and no interruption to the people who work there.”

Cullen said 94 people work at the Maple Plain plant.

American Custom Rotomolding President and CEO Craig McIntosh said his firm’s customer base will rely on the more than 20 years of expertise of the team in Maple Plains.

“Over the next few weeks, American Custom Rotomolding looks forward to meeting with all of the Maple Plain employees and customers to ensure a smooth transition and an interrupted continued supply of exceptional products and services,” McIntosh said in a news release.

Snyder needed capacity

Michael Spurrier, Snyder’s vice president of sales and marketing, said Snyder has been adding machines to its existing plants, but still needed more capacity. The Rotonics plants also allow Snyder to enter some new markets.

The three Rotonics facilities employ about 150, Spurrier said.

Snyder President and CEO Thomas O’Connell said the plants are a good strategic fit with Snyder’s existing product lines.

“In addition, Rotonics also provides entry into new markets, which will substantially expand our company’s growth opportunities in the broader material handling industries,” he said in the news release. “As Snyder moves forward it is our objective to provide a smooth transition for Rotonics’ employees and an uninterrupted supply of products and services to our customers.”

In 2010, Rotonics sold its tank molding division in 2010 to Snyder and Norwesco Inc., which are both owned by private equity firm Olympus Partners.


Comments

Rotonics plants get new owners

By Bill Bregar
Senior Staff Reporter

Published: February 29, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Optical disc molder OEM getting into micromolding with acquisition of CDA

August 29, 2014 11:24 am ET

Optical disc replicator and molder Optical Experts Manufacturing Inc. of Charlotte, N.C., has expanded its core business and entered new high...    More

Polish injection molder Teknorubber up for sale

August 29, 2014 9:14 am ET

Polish plastic parts maker Teknorubber has been put up for sale following its insolvency filing in March 2014. The company is to be auctioned through ...    More

Image

Canadian mold maker Thibault adding to new operation in Mexico

August 27, 2014 3:19 pm ET

Canadian mold maker I Thibault Inc has purchased an established Mexican company, Tecnimoldes SA de CV, for a seven-figure-dollar-sum and renamed it...    More

Image

Canadian thermoformer ICI gets new financial backing

August 26, 2014 3:11 pm ET

Innovative Composites International Inc. (ICI) will get a $1.5 million infusion in the form of a loan and equity funding to cover a corporate...    More

Image

Kayak maker Confluence taking on a broader outdoor products business focus

August 26, 2014 12:54 pm ET

Canoe and kayak rotational molder Confluence Watersports Co. has a new owner and a new name — Confluence Outdoor Co. — that reflects a bro...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events