Colonel's International Inc. plans to set up a major truck-parts processing plant in Texas using funds from the sale of one of its subsidiaries.
The Milan, Mich., firm said Sept. 17 it plans to sell Colonel's Inc., a molder of aftermarket vehicle bumpers and fascias, for undisclosed terms.
Colonel's operates seven injection presses, with clamping forces of 75-3,000 tons, and seven reaction injection molding machines in a Milan facility, said Richard Schoenfeldt, Colonel's International's chief financial officer.
An investor group led by Philip B. Storm agreed to buy Colonel's, including five U.S. warehouses. Schoenfeldt estimated Colonel's sales at about $35 million a year, compared with Colonel's International's $48 million total.
Colonel's International is renting a 700,000-square-foot building in Abilene, Texas, and plans to start production of truck bed liners and accessories there early next year, Schoenfeldt said in a telephone interview. Its processes will include thermoforming, injection molding, compression molding and extrusion. He did not provide a cost estimate but said some funds from the sale will be used to finance the project.
Subsidiary Colonel's Truck Accessories Inc. now thermoforms and extrudes truck bed liners and truck accessories in Owosso, Mich., and Uniontown, Pa. It acquired the latter facility when it bought Rugged Liner Inc. of Mount Braddock, Pa., in April.
Colonel's Truck sells to new vehicle dealers and distributors and directly through more than 25 company-owned retail stores. Rugged Liner mainly exports its products, including to some offshore original equipment vehicle producers.
Colonel's International's other subsidiary is Brainerd International Raceway, a motor racetrack in Brainerd, Minn.