M.A. Hanna Co. sold Cimco Inc. for $11.82 million - about $6 million less than it was offered by Cimco's former owner, according to Hanna's second-quarter report. Cleveland-based Hanna purchased the Costa Mesa, Calif., custom injection molder last year in a deal to acquire its CTi compounding unit. In June, it sold the molding unit to InteSys Technolo-gies Inc. of Gilbert, Ariz.
When Hanna purchased Cimco, the companies had an informal agreement to sell the molding business back to its founder, Russell T. Gilbert, for about $18 million. That deal fell through, however, and Gilbert has filed suit against Hanna for promissory fraud and breach of contract, among other things.
Hanna spokeswoman Barb Gould said the company chose to take the InteSys offer, rather than going with Gilbert, because Hanna did not believe he could line up financing to back up his offer. Gilbert claims he had financing for the deal.
Meanwhile, the dispute between Hanna and Gilbert continues to muddle InteSys' plan for the molding operations. At issue now is who owns the building that houses InteSys' manufacturing operations in Costa Mesa.
Gilbert claims in documents filed in Orange County Superior Court that he retains property ownership rights through Mesa Leasing Co., a partnership formed in 1961 to purchase, then lease back, the property that housed Cimco's molding business.
Cormac J. Carney, Gilbert's lawyer, said InteSys already has taken down the Cimco sign on the main manufacturing building and put up its own sign, InteSys Technologies West, without Gilbert's permission.
Nicholas Smeed, vice president of human resources and corporate development for InteSys, said the real estate purchased by InteSys from Hanna included the Dayton, Nev., plant and two buildings across the street from the main facility, which formerly housed Cimco's medical molding and clean-room assembly operations, the tool room and warehouse space.
InteSys leases the main facility from Hanna.
``As far as we know, our landlord is Hanna,'' Smeed said. ``Whatever other disputes there are are strictly between Gilbert and Hanna.''