PW Eagle announces it won't seek buyer
EUGENE, ORE. - PW Eagle Inc. apparently is not seeking a new owner actively.
Earlier this year, the publicly traded, Eugene, Ore.-based pipe extruder announced it had hired investment banker Goldsmith, Agio, Helms Securities Inc. to ``review strategic alternatives that would increase shareholder value'' - bankerspeak for seek a buyer.
But following the review, PW Eagle decided ``there was no strategic transaction or event, including a sale of the company, that would enhance shareholder value,'' the firm said July 19 in a news release. Instead, PW Eagle will focus on reducing debt and improving operations.
``We will, of course, continue to take advantage of strategic opportunities that present themselves, particularly to expand the geographic markets for our proprietary products,'' said Co-Chairman Bill Spell. ``However, the reduction of the company's debt level will remain a priority for us.''
PWPoly Corp., its high density polyethylene pipe operation, will be spun off separately to current PW Eagle shareholders in the fourth quarter, Scott Long, PW Eagle's chief financial officer, said in a July 22 telephone interview. PWPoly still is in talks to acquire an undisclosed extruder of small-diameter PE pipe with sales of about $40 million. Officials said that transaction was delayed because of ``issues'' between the two parties, but offered no details other than to say they believe those issues have been resolved.
PWPoly has not entered a definitive agreement. Any transaction would close in the third quarter, officials said.
PW Eagle will announce second-quarter results Aug. 2. ``We are pleased with our operating results for the second quarter,'' Spell said.
Technimark plans N.C. site expansion
ASHEBORO, N.C. - Asheboro-based injection molder Technimark Inc. plans to expand one of its manufacturing locations in the state by the first quarter of 2005, an investment totaling $36.5 million.
The final location depends on the outcome of an Aug. 2 meeting with Asheboro city officials, Technimark officials said in a July 23 telephone interview. Technimark is seeking incentives from the city.
The three-year plan calls for adding 31,000 square feet to a site in Asheboro or Fayetteville, N.C. Officials said they could add 15-20 presses and nearly 80 employees.
Technimark officials said the company suffered when it lost its core industrial business to overseas manufacturers. It has worked to diversify in areas such as thin-wall packaging and in-mold labeling.
``The last two years have been tough," said President Don Wellington. We're seeing some good things happen. It took us two to three years to get going in what we wanted to do.''
The company already had a cosmetic packaging business. Now it has moved into media packaging, making all of Blockbuster's DVD cases.
Other end markets include computers, office products, lawn and garden and appliances. Technimark has four molding locations in Asheboro, one in Fayetteville and three in Mexico. It reported 2003 sales of $100 million.
Bermuda firm to make composite pallets
BERMUDA - A Bermuda-based company claims to have plans for two very large plants to make composite plastic shipping pallets.
According to information on the company's Website, PVAXX Ltd. has broken ground on a 933,231-square-foot plant in Bahrain. The firm is considering building a second plant in Quonset, R.I., according to a report in the Providence (R.I.) Journal.
Construction began July 4 on the Bahrain facility, which is scheduled to be finished in March, according to a news release. The $85 million plant will employ 300, according to the release.
The 1 million-square-foot Rhode Island plant would employ 350 and cost $60 million. PVAXX will meet with Rhode Island's Economic Development Corp. in late July to negotiate a lease and incentive package, according to the newspaper article.
PVAXX officials did not return several telephone calls. According to the company's Website, the firm has been doing research for 14 years on technology to mold low-cost materials like ash, recycled tires, sand and silt with plastic to make strong, lightweight composite pallets.