A Beachwood, Ohio-based private equity firm is buying Omega Polymer Technologies Inc. for an undisclosed amount.
Resilience Capital Partners LLC, which focuses on ``underperforming and turnaround situations,'' signed a definitive purchase agreement Sept. 21 to acquire Omega, an Aurora-based profile pultruder that filed for Chapter 11 bankruptcy protection in August.
The companies did not disclose the purchase price. The deal is subject to bankruptcy court approval.
Omega ran into trouble for many reasons, Resilience managing partner Steven Rosen said in a Sept. 22 telephone interview.
``They had a high-material-cost environment and competitive price pressure on the pricing side. That means you have to become a world-class manufacturer. Our goal is to make this company world-class, and we'll give this company the capital and management resources it needs,'' Rosen said.
Omega on Sept. 5 filed a notice with the Ohio Bureau of Workforce Services indicating it intended by Nov. 10 to close its Omega Pultrusions Inc. division in Aurora, which employs 60 and makes windows, door frames and lighting fixtures.
The Plain Dealer in Cleveland reported recently that Bayport, Minn.-based Andersen Corp., a market leader in window and door manufacturing, and a major customer of Omega, was financing the operational costs Omega was paying to make parts for Andersen, just to keep the company afloat.
An Anderson spokesman said the company does not comment on individual suppliers or customers.
Omega officials could not be reached for comment. Guy Fustine, the company's Erie, Pa.-based bankruptcy lawyer, did not return phone calls seeking comment. Omega filed for Chapter 11 in U.S. Bankruptcy Court in Erie.
Rosen said the slowdown in building and construction is a chance for Omega to position itself to capitalize on the industry's eventual resurgence.
``When things aren't going well, there's an opportunity to begin again a little more intelligently,'' he said. ``People create their own success by continuous improvement, focusing on the little things, the details, and being customer-focused.
``We hope to grow it, both organically, and through acquisition.''
Omega also owns Early Branch, S.C.-based highway safety equipment maker Carsonite International Corp., which Rosen said is being sold to another buyer.
In August, Omega sold its Corry, Pa.-based Viking Plastics Inc. injection molding division for $4.6 million.
Plastics News staff reporter Matt Griswold contributed to this report.