Machinery liquidator buys assets of Ohio appliance molder Core Systems

By Michael Lauzon
Correspondent

Published: April 2, 2013 3:41 pm ET
Updated: April 8, 2013 11:01 am ET

Related to this story

Topics Appliances, Mergers & Acquisitions, Injection Molding

CLEVELAND -- Defunct custom injection molder Core Systems LLC's major assets have been purchased by plant and machinery liquidator Perfection Industrial Sales of Elk Grove, Ill.

Cleveland lawyer Thomas Coffey of Tucker Ellis LLP represented the secured creditor in the auction held April 2. Coffey said in an April 2 telephone interview that Perfection Industrial paid $4.33 million for the equipment in Core Systems' Painesville, Ohio, facility and $1.8 million for the Mount Gilead, Ohio, plant and equipment. The Painesville building itself was not part of the auction since it has been leased.

"We see a small window to put Ohio jobs back to work," Perfection Industrial principal Adam Stevenson said by phone the day after the auction. "The used machinery market is stronger because of lack of supply. Ohio is a good place to do molding."

Stevenson said it is too early to comment on interested buyers for the former Core Systems assets but he believes there is a chance for the Mount Gilead plant and equipment to be sold as one parcel to an existing molder. Equipment at the Painesville plant might be sold in lots. Such sales could occur soon since the Painesville plant is leased and there is more urgency to wrap up the molding operation's fate.

Perfection Industrial of Elk Grove Village, Ill., is a liquidator for a range of industries, including plastics. Its business encompasses offshore deals and equipment placements for OEMs, Stevenson said. It will deal in equipment and real estate and conducts some bids online. The firm has more than 48 years of experience.

Core Systems shut the Ohio plants down after major customer and appliance titan Whirlpool Corp. pulled its business, claiming the Ohio molder did not live up to agreed-on performance improvement targets. Whirlpool went to court to force Core Systems to give up the Whirlpool molds. Major customers for the plants included GE Appliances. Stevenson said he is not aware of either appliance company wanting to buy assets to keep molding alive in Mount Gilead or Painesville.

The secured creditor for the sale was Extrusion Acquisition LLC, a subsidiary of private equity firm Special Opportunity Value Fund of Chicago. Extrusion Acquisition was an ad hoc company formed to buy the stakes of former Core Systems secured creditors Fargo Bank and J.P. Morgan. Coffey said the auction sale was conducted under state law, Coffey's specialty. Federal laws often govern bankruptcy proceedings but state laws can apply under some circumstances, such as UCC, or Uniform Commercial Codes.

"There's a good chance Mount Gilead will be sold lock, stock and barrel as a continuing concern," Coffey said. Painesville's assets could be sold piece-meal. Coffey said the plastics machinery market is recovering and the assets probably will find good, productive homes.

The Painesville operation was Core Systems' headquarters plant with 61 injection presses with clamp forces of 60-720 tons. Mount Gilead houses 24 presses with clamping forces up to 1,000 tons.

Coffey said there was a lot of interest in both operations prior to and during the auction. Stevenson said interest remains high.


Comments

Machinery liquidator buys assets of Ohio appliance molder Core Systems

By Michael Lauzon
Correspondent

Published: April 2, 2013 3:41 pm ET
Updated: April 8, 2013 11:01 am ET

Post Your Comments


Back to story


More stories

Image

Houston Plastic continues to grow with new press, controlled production area

October 1, 2014 11:32 am ET

Custom injection molder Houston Plastic Products Corp. has extended its clamp tonnage range and added an environmentally controlled molding area.    More

Image

RJG buys UK training group G&A

September 30, 2014 11:10 am ET

G&A Moulding Technology Ltd., a United Kingdom-based training and consultancy group, has been bought by RJG Inc., the U.S.-based training business.    More

Image

Ohio molder Denbro Plastics moves to new location

September 29, 2014 6:17 pm ET

Logo products injection molder Denbro Plastics Co. has moved to another plant within Toledo, Ohio, to streamline production and improve efficiency.    More

Image

Clariant extends reach into Asia with acquisition

September 29, 2014 9:54 am ET

Clariant International Ltd. is buying VitaPac (HK) Industrial Ltd., a Hong Kong-based company which produces desiccant packets for the healthcare...    More

Image

Nypro Healthcare continues to grow following Jabil acquisition

September 26, 2014 1:59 pm ET

Nypro Healthcare's newest medical device manufacturing facility offers 200,000 square feet of carefully configured Class 8 clean room molding and asse...    More

Market Reports

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 million dollar plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our industry analysis highlights macro industry trends and micro trends faced by companies that do business in Mexico. The report also provides key industry statistics and forecasts to anticipate future industry expansion.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Injection Molders Market Report & Ranking 2014

This special package contains our 132-page 2014 Market Report on the Injection Molding segment and our exclusive 2014 RANKINGS database of 500+ Injection Molders for a discounted package price.

Learn more

Upcoming Plastics News Events

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

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

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events