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 Mergers & Acquisitions, Appliances, 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

New medical firm buys Clairson Plastics

September 19, 2014 4:33 pm ET

Custom injection molder Clairson Plastics is being sold to a new start-up that plans to dive into the medical market with a new dialyzer, a key...    More

Image

Hong Kong's TK eyes expansion, may buy Nypro Tool operation

September 19, 2014 2:49 pm ET

Hong Kong-based mold maker and plastics processor TK Group (Holdings) Ltd. said it's reached a tentative agreement to buy a tooling factory in...    More

Exo-s buys injection and blow molder in Mexico, expands footprint

September 19, 2014 2:15 pm ET

Custom molder Exo-s Inc. has bought an injection and blow molding operation in San Juan del Rio, Querétaro, Mexico.    More

Image

Bayer spinning off plastics business

September 18, 2014 8:49 am ET

Bayer AG will spin off its MaterialScience plastics group into a separate, publicly-traded company within the next 12 to 18 months.    More

Image

Smartphone work adds 52 percent to sales for China's Eva Precision

September 18, 2014 4:37 pm ET

Growth in supplying the smartphone and automotive industries helped Chinese processor Eva Precision Holdings Ltd. push injection molding sales up 52 p...    More

Market Reports

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

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

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

Upcoming Plastics News Events

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

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

More Events