Applied Extrusion Technologies Inc. on May 15 sold its Custom Nets & Profiles division for $26.5 million to a new holding company run by the division's former managers.
Atlantic Extrusions Corp. of Salem, Mass., was formed by Founders Fund of South Carolina LP, a Greenville, S.C.-based firm that invests in middle-management leveraged buyouts.
Last year CN&P had sales of $24 million. In the 1980s the division developed a unique process for manufacturing plastic netting products used for home furnishings, utility, furniture and office systems.
Allan Allott, AET president and chief operating officer, said the firm has sold its netting, profile, adhesives and injection molding divisions to focus on oriented polypropylene films for packaging, labeling, medical and filtration markets.
``Now we also have to reinvest our assets into our core business,'' Allott said of Peabody, Mass.-based AET.
Robert I. Mills Jr., Atlantic Extrusions president, said his firm is optimistic about the purchase.
``I think this is a wonderful transition for us,'' Mills said. ``The deal was seamless and now we are going to have the capital to be able to do the things we need to do.''
CN&P manager Robert Montagno was named Atlantic executive vice president and COO, and Nancy Bethel was appointed chief financial officer.
AET ranked 21st in Plastics News' 1997 survey of North American film and sheet manufacturers, with relevant sales of $240 million. Its film division is based in New Castle, Del.