Ravago purchasing stake in Muehlstein
ARENDONK, BELGIUM - Arendonk-based Ravago SA will purchase an undisclosed stake in Muehlstein Holding Corp. of Norwalk, Conn. The deal, announced June 15, includes Muehlstein's Channel Prime Alliance group in North America and its Pegasus Polymers units in Europe and Asia.
Muehlstein also operates a pair of compounding businesses - Muehlstein Compounded Products in Houston and Trinity Specialty Compounding Inc. in West Unity, Ohio - but spokesman Dag Lian declined to say in a June 16 interview if those units are included.
Muehlstein and Ravago will continue to operate as separate financial entities. The transaction is expected to close in the third quarter. Ravago already owns a 49 percent stake in Entec Polymers, a Maitland, Fla.-based resin distributor that recently announced it was merging with North America Group Inc. Lian said Muehlstein does not compete directly with Entec.
Muehlstein's annual sales are estimated at $1.4 billion. The 95-year-old firm distributes 2.8 billion pounds of resin annually.
Ravago also operates compounding and recycling businesses, and distributes finished products such as pipe and sheet. The firm's annual sales are estimated at more than $1 billion.
Ravago's European distribution units include Ultrapolymers and Resin Express.
Summit to close Mo. auto parts plant
KALAMAZOO, MICH. - Summit Polymers Inc. will close its Missouri injection molding facility and transfer work to Michigan plants in response to a shift in business by its customer.
The Kalamazoo-based auto supplier plans to close the Columbia, Mo., site by the end of 2006. The plant employs 190.
The facility supplies parts for Automotive Components Holdings LLC in Kansas City, Mo., for the Ford Escape and Mazda Tribute sport utility vehicles.
Dearborn, Mich.-based ACH, formerly part of Visteon Corp., has decided to close the Kansas City plant and shift production to its Saline, Mich., operations, forcing Summit to make a change as well, said Greg Goodman, Summit's vice president of human resources, in a June 14 telephone interview.
Summit has multiple Michigan facilities and will produce the same parts from those sites, he said. Columbia employees will have the opportunity to seek jobs at other Summit locations.
Plastech may pursue Engineered Plastic
YPSILANTI, MICH. - Two potential buyers, including Plastech Engineered Products Inc., are in talks to acquire automotive trim supplier Engineered Plastic Products Inc., insiders told Automotive News, a sister publication to Plastics News.
Vianessa Shephard, human resources director for Engineered Plastic, said she was unaware of any buyer interest or any plans for a change of leadership at the Ypsilanti company.
Automotive News could not confirm the name of the other potential buyer.
Plastech, a Dearborn, Mich., injection molder with about $1.1 billion in annual sales, is owned by Vietnamese-born entrepreneur Julie Brown.
Engineered Plastic entered Chapter 11 on March 9 in U.S. Bankruptcy Court in Detroit.
Wincup owner Radnor mulling options
RADNOR, PA. - Food-service products manufacturer Radnor Holdings Corp. of Radnor has hired Lehman Bros. to help it explore alternatives that may include sales of its assets.
The firm, whose holdings include Phoenix-based disposable cup thermoformer WinCup Holdings Inc., announced the plan June 15. Other alternatives include raising capital, a recapitalization or other restructuring transactions to reduce its debt.
``The company has implemented its previously announced cost-reduction initiatives,'' Radnor Chief Executive Officer Michael Kennedy said in a news release. ``However, the business continues to face volatility and escalating prices in the resin and energy markets and a higher interest-rate environment.''
The company in May announced a cost-cutting program that included closing WinCup's plant in Jacksonville, Fla.
Preliminary operating results for Radnor's first quarter show sales increased $1.3 million to $116.2 million, but profit decreased by at least $4.5 million, compared with the first quarter of 2005.