NEWPORT BEACH, CALIF. - Medical plastics processor Urohealth Systems Inc. has agreed to purchase Richard-Allan Medical Industries Inc. for a total of $55 million - $27.5 million in cash and the balance in Urohealth common stock. Richard-Allan, headquartered in Richland, Mich., is a privately held company that manufactures and markets a line of minimally invasive plastic disposable products for the gynecological and general surgery markets. The company had sales of $21 million for its fiscal year ended June 30.
Newport Beach-based Urohealth also designs, manufactures and markets disease-specific urological, gynecological and general surgery disposable medical products for the healthcare market. This deal also will allow it to offer a full line of minimally invasive products, according to a spokeswoman, who said Urohealth bought Richard-Allan for its product lines, strong sales force and modern manufacturing facility.
The combined companies will have a sales force of 140 people selling directly to urologists, gynecologists and general surgeons.
U.S. Can agrees to buy Ga. molder CPI
OAK BROOK, ILL. - Seeking to expand its position in the industrial, paint and chemical plastic container markets, U.S. Can Co. has signed a letter of intent to purchase CPI Plastics Inc. of Newnan, Ga.
Timothy Stonich, executive vice president and chief financial officer for Oak Brook-based U.S. Can, said the purchase of the injection molder should be complete by early August. He would not disclose the purchase price.
CPI, with injection molding facilities in Newnan; Jerseyville, Ill.; and Alliance, Ohio, makes resealable plastic pails of up to 12-gallon sizes for the chemical, water treatment and food industries.
``This is a proprietary line, and a niche market,'' Stonich said in a telephone interview. ``It is a substantial market and a good match for our other products.''
U.S. Can, with 30 plants in North America, is a major producer of metal containers for personal-care, household, automotive, paint and industrial products. It had total sales of about $627 million in 1995.
The company entered the plastics arena with its purchase last year of Plastite Corp. of Morrow, Ga., an injection molder of plastic containers for paint, chemicals and personal-care products, with $16 million in annual sales at the time of the acquisition by U.S. Can.
The purchase has been approved under the Hart-Scott-Rodino Antitrust Improvements Act, which requires regulatory approvals for large acquisitions in similar or related industries.
Sommer parts company with Lear Corp.
DETROIT - Frederick F. Sommer, president of Lear Corp.'s Automotive Industries division, left the company July 15 to become president and chief operating officer of Citation Corp., a publicly held casting and forging company based in Birmingham, Ala.
Lear said Robert E. Rossiter, president and chief operating officer, will act as interim president of the interiors division until a replacement for Sommer is named.
At Automotive Industries, Sommer directed an aggressive acquisition program, expanding the company's automotive trim operations and product offerings in North America and Europe.
Last August, Southfield, Mich.-based Lear acquired Auto-motive Industries for $926 million.
Rubbermaid Inc. to contest labor ruling
CARSON, CALIF. - Rubbermaid Inc. wants to overturn an arbitrator's decision that the company must pay more than $1 million in back and future pay to 65 union workers who lost their jobs when Rubbermaid closed its Carson distribution center.
The facility closed Dec. 31 as part of a restructuring by Rubbermaid to lower costs and deliver goods faster to retailers.
Rubbermaid filed a petition July 17 in U.S. District Court in Los Angeles to invalidate the decision. Rubbermaid also said it has offered to resume negotiations with Local 451 of the United Steelworkers of America.
A portion of the work was diverted to a Rubbermaid plant in Marysville, Tenn. The union said the company did not offer California workers the chance to relocate or offer appropriate compensation, as outlined in the labor contract.
On June 9, arbitrator Reginald Alleyne ruled that Rubbermaid violated the contract. According to Rubbermaid, he called for the company to pay wages extending 12 months after the closing date. The union and company disagree on the amount. The union said the award is for more than $1.8 million. Rubbermaid puts the number closer to $1.5 million.
A Rubbermaid spokeswoman said the company was denied due process because Alleyne excluded certain evidence. The petition also argues that the arbitrator changed the contract, exceeding his authority.