A unit of financial giant ING Groep NV has acquired the assets of Alliance Precision Plastics Corp. of Rochester, N.Y., and may use Alliance as a platform to expand in the plastics industry.
``What we saw was a good value,'' Rocky Butler, an ING executive and Alliance's new president, said in a telephone interview.
ING U.S. Investment Corp. of New York purchased Alliance's accounts receivable, inventory, fixed assets and intangibles for $2.8 million in a June 3 auction authorized by the U.S. Bankruptcy Court in Rochester. The transaction closed June 5.
Alliance had filed Feb. 19 for protection from its creditors under Chapter 11 of the U.S. Bankruptcy Code.
The injection molding and toolmaking business employs 135 and had sales of $11.8 million for the fiscal year ended Feb. 28, down from $14 million for fiscal 1997.
ING evaluated the business initially in early May, spent time with the debtor and formed a Delaware corporation June 1 using the same Alliance name.
Butler found ``loyal customers and loyal employees'' at Alliance in the wake of the uncertainties, and he is ``looking at ways to increase efficiency and tooling,'' gain additional business and ``potentially acquire other companies.'' Molding accounts for about 60 percent of revenues, and tooling, for the remainder.
Customers have included Xerox Corp., Eastman Kodak Co. and Bausch & Lomb Inc. Butler said office equipment represents the largest business segment with increases occurring in the medical market.
Headquartered in Amsterdam, the Netherlands, ING says it is the world's largest publicly held life and health insurer. ING has extensive banking operations in Europe and, through London-based Barings Bank, has a network of financial institutions throughout the world.