The parent firm of Aargus Plastics Inc. on Oct. 2 bought the net assets of bankrupt film extruder Midwest Film Corp. Midwest Film, based in Chicago, filed for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code on Aug. 23. The assets were purchased for $6.1 million by Starr-Cohen investment group.
Starr-Cohen formed a new company, Polystar Films LLC, to buy Midwest Film, and to operate the former Midwest Film plant in Chicago.
The investment group also owns and operates Aargus Plastics, a Des Plaines, Ill., extruder, printer and converter. Polystar and Aargus are now sister companies, having common ownership but separate operations.
Midwest Film reported sales of $20 million and was 124th in Plastics News' 1996 ranking of North American film and sheet manufacturers.
The 81,000-square-foot former Midwest plant has 11 film extrusion lines and 85 employees. Officials expect the number of employees to exceed 100 soon. Polystar processes low and high density polyethylene garment, merchandise and T-shirt bags for the retail, laundry and dry cleaning industries.
``This acquisition more than doubled our production capacity,'' said Martin Cohen, Aargus' chairman and chief financial officer. He explained that Aargus targets the retail and industrial markets and competes with 10-15 percent of Polystar's products.
Aargus has 23 extrusion lines and 125 employees in its 56,000-square-foot plant. It also processes LDPE and HDPE. The company has been in business for 30 years.
Starr-Cohen owns other businesses not related to the plastics industry.