Dura Automotive Systems Inc. of Rochester Hills, Mich., has agreed to pay $60 million to buy Elkhart, Ind.-based Creation Group from Heywood Williams plc, nearly three years after the British parent first decided to sell all of its U.S. operations. Creation represents one of three U.S. companies in Heywood Williams' portfolio.
Creation Group designs and produces windows, doors and fabricated aluminum parts for the manufactured homes, automotive aftermarket and recreational vehicles sectors. Dura makes driver and seating control systems and structural door modules.
Creation, which employs 1,100, operates 10 production and warehouse facilities in Indiana, Ohio and Pennsylvania. The cash deal, still to be approved by Heywood Williams shareholders and U.S. antitrust authorities, involves the payment of $57 million on completion. A further $3 million is payable if Creation achieves certain revenue targets within the following year, Heywood Williams said.
Creation Group recorded a 2002 profit of $8.7 million on annual sales of more than $145 million.
Huddersfield, England-based Heywood Williams said it will use funds from the sale to reduce debt. The firm decided to sell its U.S. operations to concentrate on core vinyl profiles, window, door and home conservatory business in the United Kingdom. It also makes vinyl pipe and automotive parts.
Its remaining U.S. businesses, both based in Elkhart, are pipe extruder Bristolpipe Corp., with plants in Bristol, Ind., and Leola, Pa.; and housing and plumbing products distributor LaSalle Bristol. Heywood Williams blamed the delay in selling the remaining operations on the poor U.S. economy.