Canada's biggest plastic pipe extruder, Ipex Inc., is up for sale.
Ipex half-owner Ivaco Inc. of Montreal announced the planned sale May 27. It said a small number of prospective buyers have been chosen and due diligence is under way.
Ivaco expects that the Ipex sale, and sale of land in Georgia for about C$100 million (US$67.7 million), essentially will wipe out its C$490 million (US$331.7 million) in long-term debt. Officials at Scepter Holdings Inc. of Toronto, Ivaco's partner in Ipex, declined comment.
Ipex earned C$78 million (US$52.6 million) in 1998, before interest, taxes, depreciation and amortization. A spokeswoman would not disclose the firm's sales.
Ivaco will focus on its core businesses of steel-wire rod, wire products, fasteners and other steel products. Last year the owners of Ipex withdrew a planned initial public offering because of weak stock markets. They had planned to offer one-third of Ipex's subordinated voting shares on Canadian stock exchanges.
Ipex, established in 1992, makes PVC, ABS and polyethylene pipe and fittings and other extruded products at plants in Toronto, Mississauga and London, Ontario; St.-Jacques, St.-Laurent and St.-Eustache, Quebec; Saint John, New Brunswick; Weyburn, Saskatchewan; Edmonton, Alberta; and Langley, British Columbia.