A U.S. Bankruptcy Court in Wichita Falls has approved J-M Manufacturing Co. Inc.'s purchase of Quail Piping Products Inc., a high density polyethylene pipe maker in Magnolia, Ark.
The sale was approved Aug. 28, said Charles Dale, Quail's lawyer. PVC pipe giant J-M will assume control of Quail's two facilities in Magnolia and Kingman, Ariz. The transaction is valued at $12 million, subject to certain adjustments.
The sale should close the week of Sept. 1, Dale said in an Aug. 29 telephone interview.
It's a predictable finale to a pipe industry saga that has dragged on for months. Livingston, N.J.-based J-M Manufacturing signed its original letter of intent to acquire Quail in March. Quail filed for Chapter 11 bankruptcy protection July 15 as a means for an orderly sale, officials said.
Quail has been privately owned by investors who purchased it in 1999 from Asahi America Inc., a plastic fluid-flow-products firm based in Malden, Mass. Quail Executive Vice President Randy Barton will remain involved in the operations; Chief Executive Officer T.J. Hammer will not, officials said.
J-M operates 12 extrusion plants throughout the United States, producing HDPE and PVC pipe.
The firm is owned by resin giant Formosa Plastics Corp. U.S.A., also based in Livingston.
In Plastics News' 2003 ranking of pipe, profile and tubing manufacturers, J-M had an estimated $590 million in extrusion sales.