Alltrista Corp.'s thermoforming business might be sold to a third party if Alltrista's major shareholder acquires the company.
Marlin Partners II LP withdrew its previous offer to purchase Alltrista for $18 a share, Alltrista announced June 25. The two firms had signed a letter of intent on May 7 but did not complete the deal. During discussions Marlin proposed new conditions for the deal, including the sale of the thermoforming business at the same time it acquired the rest of Alltrista, said Alltrista spokeswoman Kristin Clauss.
Alltrista is still open to discussions with Marlin and other potential buyers, the firm stated in its news release. A deal with Marlin could include the sale of the thermoforming business coincident with the closing of the purchase of the entire company, Alltrista noted.
Officials at Rye, N.Y.-based Marlin did not respond to requests for comment on why Marlin does not seem interested in the thermoforming operation.
Without the thermoforming business, Marlin would acquire a mainly metals company with a modest injection molding business. Indianapolis-based Alltrista's metal businesses include Ball, Kerr and Bernardin home food preservation products and production of zinc strip and fabricated metals such as coin blanks for U.S. and foreign mints.
Alltrista Chairman, President and Chief Executive Officer Thomas Clark said his firm has invited two Marlin partners, Martin Franklin and Ian Ashken, to join its board of directors. Clauss said they agreed to join the board.
Alltrista recently realigned its thermoforming business by putting in a single management team. Triangle Plastics, TriEnda and Alltrista's former industrial plastics division now report to Bruce Buchholz, president of the newly formed thermoformed products division. Clark said in the news release that the realignment improved efficiency, but he added that demand in key markets is depressed.
Clark warned in the news release that Alltrista's profit before interest, taxes, depreciation and amortization in 2001 will be 15 to 20 percent lower than its earlier forecast of $55 million. The company is feeling the impact of weakness in automotive, heavy truck and manufactured housing markets. Clark said management continues to assess its thermoforming operations, which are running below capacity.
In injection molding, the startup of a new healthcare program has been delayed, and other markets are soft, according to Alltrista.