Polyurethane foam systems supplier IPI division of PMC Inc. remains interested in potential acquisitions despite the recent breakup of a deal with Urethane Technologies Inc. of Orange, Calif. ``We are continuing along [the acquisitions] path and looking for targets,'' Gary Kamins, division president, said in a telephone interview from PMC's headquarters in Sun Valley, Calif.
UTI signed a letter of intent Sept. 24 with PMC to combine UTI with IPI into a new public company. UTI announced Oct. 23 that it and PMC agreed to cancel the letter of intent because UTI's common stock price plummeted a few weeks after the first announcement. UTI said its stock price on Nasdaq was $1.06 on Sept. 24 but 53 cents on Oct. 18.
UTI had agreed to buy IPI with UTI common stock sufficient to provide PMC with 45 percent ownership of the combined firm. UTI president James Orefice said in the Oct. 23 news release, ``The change in UTI's market price means that the deal as structured could not go forward.''
A UTI spokeswoman said Nov. 1 that UTI still was interested in the deal with PMC. Kamins said he doubts PMC and UTI will be able to restructure the deal. UTI's stock price crash was only one reason PMC decided not to consummate the deal, Kamins explained Nov. 6.
Other issues came up while PMC was doing due diligence with UTI and these issues need to be solved before PMC would reconsider a deal. He would not disclose what the issues were.
IPI is based in Elkton, Md. Its sales last year were about $37 million.
UTI had sales of $26.6 million in 1995.