Reunion Industries Inc. has exited plastics processing with the sale of its ORC Plastics Division to newly formed Oneida Molded Plastics LLC.
Investors paid about $11.6 million in cash for the business, effective March 1 and contingent on post-closing adjustments, Reunion stated in a March 8 Securities and Exchange Commission 8K filing.
The buyers get injection molding plants in Oneida, N.Y.; Phoenix, N.Y.; and Siler City, N.C.; and a toolmaking operation in Phoenix, N.Y. Oneida Molded Vice President of engineering John Werner said the new company has 69 presses from 22-950 tons. Sales of the 210-employee company are running at about $22 million annually, he estimated in a telephone interview. Its headquarters are in Oneida.
``We know how to build tools, shoot parts, and then add value with finishing services,'' Werner noted in a news release. ``It's an integrated solution for our customers.''
Oneida Molded's secondary services include ultrasonic welding, assembly, machining, printing, painting and shielding. The firm lists as its main markets medical equipment, business machines, telecommunications, recreational firearms, building materials and transportation.
Ownership of the new entity is split between private equity firm Laud Collier & Co. LLC of Chatham, N.J., Argosy Investment Partners of Wayne, Pa., Family Capital Growth Partners of Greenwich, Conn., and management. The management group of investors includes R. Barry Uber who joins the business as executive chairman. He formerly was group executive with industrial conglomerate Ingersoll Rand Corp.
``Our new, strong balance sheet and access to capital will allow us to focus on operating improvements, and solidifying relationships with our customers and suppliers,'' Uber said in a news release.
Laud Collier has managed investments in nine plastics companies in the past 15 years and was a founding investor for Berry Plastics Corp. of Evansville, Ind., in 1991.
``Despite playing in a highly competitive industry, with a volatile resin market, [Oneida Molded] has managed to consistently grow its top line and cash flow over the past several years,'' stated Paul Laud, a principal in Laud Collier, in a news release.
Reunion got out of thermoset plastics molding in early 2005 with the sale of assets from its Lafayette, Ind., plant to two competitors in thermosets. Three years earlier it closed a Charlotte, N.C., operation that was the plastics division's headquarters. It kept Siler City open when a surge of new business caused it to reverse an earlier decision to close the site.
Reunion twice noted in SEC filings last year that it had missed interest payments on notes. Company officials could not be reached for comment on the plastics business sale. The Pittsburgh-based company's main businesses now are large-diameter pressure vessels, hydraulic and pneumatic cylinders and industrial gratings.