Second director seeks to buy Envirodyne
OAK BROOK, ILL. — After thwarting a hostile takeover, packaging processor Envirodyne Industries Inc. is facing another purchase offer, this one from HK Acquisitions Corp., a Delaware corporation.
HK Acquisitions was formed by Michael Heisley, an Envirodyne director, and Donald Kelly, Envirodyne's former chairman, president and chief executive officer. The firm is offering to purchase all outstanding shares of common stock for $8.50 per share in cash. As of Dec. 26 in Envirodyne's annual report, the firm reported 14.5 million outstanding shares of common stock, which would value the deal at about $123 million.
Envirodyne reported sales of $651.4 million and profit of $39.7 million last year.
Consummation of the merger would need board and shareholder approval. HK Acquisitions requested a response by the close of business June 18. The proposal includes a provision that if the offer is terminated under certain circumstances relating to an alternative acquisition transaction, Envirodyne would be obligated to pay HK Acquisitions $10 million.
Envirodyne, headquartered in Oak Brook, recently fought a takeover bid by another director, Malcolm Glazer. Glazer placed several conditions on the deal that shareholders found unacceptable, including controlling the board of directors.
``We know both people; it's a less conditional offer,'' Envirodyne spokesman Gordon Donovan said of the HK proposal. ``Mergers and acquisitions come up. Envirodyne was not in an active auction process.''
The offer will be evaluated by a committee of independent directors of Envirodyne who then will make a recommendation to the board of directors. The independent directors have the information and are working to meet or extend HK's deadline.
Envirodyne operates through wholly owned subsidiaries Viskase Corp., which makes cellulosic casings and specialty films; Clear Shield National Inc., which makes disposable plastic cutlery and other food-service products; and Sandusky Plastics Inc. which thermoforms vending and promotional cups and other containers.
Shintech boosting capacity, adding staff
HOUSTON — Shintech Inc. of Houston will expand its K-Bin Inc. subsidiary by adding 100 million pounds of annual rigid PVC dryblend compound capacity at the Freeport, Texas, site by early 1998.
The addition will include a fifth production line at K-Bin's 10-year-old plant, which is part of Shintech's Freeport PVC works. The expansion is K-Bin's fourth since 1991. Construction is scheduled to start between August and October. Costs were not disclosed.
The expansion will boost K-Bin's annual compound capacity to more than 400 million pounds, which K-Bin officials said makes the company the largest rigid vinyl compounder in the United States. Eight to 10 new jobs will be created, bringing K-Bin's total number of employees close to 90.
K-Bin President Todd Walker cited growth in the construction industry as a main reason for the expansion.
``PVC is the material of construction, whether it's pipe, vinyl siding, windows or decking,'' Walker said. ``When people build houses, it helps us out.''
Plastics World publishing firm bought
ST. PETERSBURG, FLA. — A company founded by two high-profile television executives has purchased PTN Publishing Co., owner of Plastics World and Plastics Formulating & Compounding magazines, for more than $100 million.
The buyer, Cygnus Publishing Inc. of St. Petersburg, announced the deal June 6.
Gerry Hogan, chairman and chief executive officer of Cygnus Publishing, formerly headed television's Home Shopping Network, and was a top executive of Turner Broadcast System Inc. His partner in Cygnus is Blair Schmidt-Fellner, also a former high-ranking Turner executive, Hogan said in a telephone interview June 12.
Cygnus bought PTN from a group headed by Stanley Sills, a longtime publishing executive who is the brother of opera star Beverly Sills. PTN will continue to publish both Plastics World and Plastics Formulating & Compounding, said Donald C. Porteous Jr., the recently appointed publisher of both magazines.
PTN, based in Melville, N.Y., publishes 52 trade magazines, employs about 350, and has sales of about $70 million.