An investor group has bought control of custom molder Waltec Plastics of Midland, Ontario. HaiFinance Corp. of Washington acquired majority control of Waltec, formerly a division of Emco Ltd. of London, Ontario. Waltec is the first manufacturing operation of HaiFinance, a diverse holding firm with interests in Boston Market franchises and other businesses, said David Webster, Waltec's controller.
Waltec was Emco's last plastics operation, said Myra Ratkaj, Emco spokeswoman. It sold its BPCO vinyl siding subsidiary to ABT Building Products Corp. on June 1, 1995. Ratkaj said Emco wants to focus on its core business of manufacturing and distributing building materials.
Emco estimated Waltec's annual sales at C$28 million (US$20.6 million). It has about 50 thermoplastic injection and thermoset compression presses, Webster said. Its injection presses have clamping forces as large as 1,500 tons, and it has painting and decorating capability. Electrical, electronic, appliance and telecommunications are its major markets.
Webster said Waltec's management team will continue under the new owner and has a minority equity in the business. Emco has no equity interest, but it bought C$1.55 million (US$1.14 million) in Waltec preferred shares. It has the option after five years to convert the preferred shares into common shares representing 15 percent equity in Waltec.
Officials did not disclose other terms of the deal, but Emco said in an Oct. 2 news release that it will use proceeds of the deal to pay down about C$10 million (US$7.4 million) of debt.
Webster said he expects Waltec to grow as a result of the deal. It will ``carry on business as usual'' in its current markets, he added.