Management buys three Dura factories
NEW YORK - Three Dura Automotive Systems Inc. plants are back in familiar hands, with the fiscal support necessary for future growth.
HKW Capital Partners II LP has joined with a management buyout of the plants to create a new Nyloncraft Inc. company out of the Dura plastics operations in Mishawaka, Ind.; Bowling Green, Ky.; and Jonesville, Mich.
HKW, part of New York-based private equity group Hammond, Kennedy, Whitney and Co., previously backed the shops as part of its equity stake in Excel Industries Inc., which sold out to Dura Automotive in 1999.
Rochester Hills, Mich.-based Dura announced in December that it had a deal to sell the three plastics operations for $41 million, but did not disclose the buyer's name. It announced the involvement by HKW and the creation of Nyloncraft on Jan. 29, when it completed the sale.
The injection molding plants employ 750 and had combined annual sales of $80 million. The plants make under-the-hood functional components and some exterior trim.
The buyout marks the first action by the newly organized HKW II fund. The fund intends to buy more custom plastics processing businesses, said Jim Snyder, a principal with Hammond, Kennedy, Whitney and Co.
Mishawaka-based Nyloncraft retains all of its key management. Jim Crzyzewski will be president and chief executive officer. Keeping the operating team was important to HKW, Snyder said.
Flextronics reaffirms plastics strategy
SAN JOSE, CALIF. - Flextronics International Ltd. has broadened assignments for its plastics and other sales forces.
``We are having sales people not only selling plastics but manufacturing services at the same time,'' Jim Sacherman, chief marketing officer, said by telephone from San Jose. Integrating the force is ``becoming more important as we move along.''
Sacherman said more customers are taking advantage of Flextronics' vertical operations and deciding ``to buy plastics and board assembly and packaging and logistics in one go.''
The contract manufacturer has built a major plastics processing capability through a series of acquisitions. ``Plastics is a good business for us, [and] we are certainly growing our plastics around the world,'' he said. Sacherman denied a rumor that Flextronics might reverse its in-house strategy on injection molding.
``The ability for us to mold plastics is a reason we were successful in winning and running the [Microsoft Corp.] Xbox business,'' Sacherman said. ``Trucks fill up our [resin] silos every day in Guadalajara [Mexico] and S rv r, Hungary,'' where Flextronics molds and assembles the popular computer games.
Traded on Nasdaq, Flextronics reported sales of $9.81 billion for the nine months ended Dec. 31.
ExxonMobil becomes sole owner of AES
AKRON, OHIO - ExxonMobil Chemical Co. of Houston will become the sole owner of thermoplastic elastomer maker Advanced Elastomer Systems LP by buying out partner Solutia Inc. of St. Louis.
ExxonMobil and Solutia had been 50-50 partners in Akron-based AES since Solutia forerunner Monsanto Inc. formed the venture with Exxon Chemical in 1991. AES employs 700 worldwide and posted sales of about $300 million in 2001. The firm ranks as the world's largest thermoplastic vulcanizate maker - produced under the Santoprene brand name - and as one of North America's 25 largest plastics compounders. AES operates TPV plants in Wadsworth, Ohio; Pensacola, Fla.; and Newport, Wales.
No short-term changes are planned at AES, ExxonMobil spokesman Vin Hoey said.
Terms of the deal were not disclosed. Solutia had announced its desire to sell its AES stake in mid-2000, saying AES no longer fit into its strategy of growing its specialty chemicals, performance films and nylon resin and fiber businesses.
Industry sources said AES has faced increased competition in recent years as TPV patents owned by Monsanto expired, allowing other companies to enter the field.
The deal will provide Solutia with much-needed cash. The firm lost $59 million in 2001, and its stock price has been hammered of late because of concerns over polychlorinated biphenyls liability that Solutia inherited from Monsanto. Solutia's per-share stock price stood at about $14 in late December, but was at $9.25 in early trading Feb. 1.