Leggett & Platt sells 4 molding plants
NEW YORK Private equity group Monomoy Capital Partners LP is making its second plastics acquisition within two months, buying L&P Plastics LLC and its four molding plants from Leggett & Platt Inc.
In August, New York-based Monomoy announced a deal to buy the six injection molding plants of Atlantis Plastics Inc. of Atlanta. Last year, the company bought Kurz-Kasch Inc., a Dayton, Ohio-based molder of thermoset parts for the aerospace, consumer and electrical distribution industries.
The L&P purchase includes injection molding and structural foam molding, with plants in Carlyle, Ill.; Poplar Bluff, Mo.; Booneville, Miss.; and Brownsville, Texas.
The companies did not disclose the purchase price.
L&P makes parts for sectors including power tools, medical devices, furniture and automotive, but the company has been a noncore asset for Leggett & Platt, based in Carthage, Mo.
Monomoy Vice President Mayank Singh said his firm will work with the current L&P executive team to develop L&P into a standalone company that will be ready to make further acquisitions in the plastics industry.
Canadian Springs adding bottle deposit
MISSISSAUGA, ONTARIO A leading supplier of delivered bottled water in Canada will place a deposit on single-serve bottles beginning Jan. 1.
Canadian Springs will sell 500-milliter (15-ounce) bottles of water with a deposit of 25 Canadian cents (26.5 U.S. cents ) per bottle. The firm sells most of its water directly to households and institutions, but also will offer the deposit system to retailers that wish to participate.
``This 500-milliliter deposit program is a model for environmentally responsible packaging management that will result in the return of almost all Canadian Springs 500-milliter bottles,'' President Richard Stephens said in an Oct. 1 news release. Canadian Springs is part of Aquaterra Corp., based in Mississauga.
``This suits their direct-delivery system,'' said Cathy Cirko, director of the Environment and Plastics Industry Council, part of the Canadian Plastics Industry Association in Mississauga.
Spell Capital Partners purchases Kason
MINNEAPOLIS Spell Capital Partners LLC has added to its plastics equipment holdings by picking up Kason Corp., a Millburn, N.J., maker of screening and processing equipment for bulk solid materials and liquid slurries. Terms were not disclosed.
Minneapolis-based Spell Capital announced Sept. 23 that its Pacific Production Technologies capital goods operation bought Kason. Pacific Production Technologies includes its own line of hydraulic presses, press brakes and shears, thermoforming equipment maker Brown Machine LLC and machinery remanufacturer Epco LLC. Spell bought all three companies in January.
Kason's equipment line includes vibratory, centrifugal and static-screening equipment, plus vibratory fluid bed dryers, coolers and moisturizers, and static sieves.
Group acquiring Wellman S.C. factory
FORT MILLS, S.C. An investment group will give PET recycling a shot in the arm through an agreement with Wellman Inc.
Three investment firms have agreed to buy the assets of Wellman's Johnsonville, S.C., site. The assets include a 190 million-pound-per-year PET bottle recycling operation that will be restarted after being idle since late 2006. Wellman is in Chapter 11 bankruptcy protection.
The deal also includes Wellman's engineering resin unit, mainly a nylon operation with annual capacity of 70 million pounds of nylon 6, 6/6 and 6/6/6, mostly derived from recycled carpet. The site also has a 235 million-pound polyester staple fiber plant.
The PET bottle recycling system will be used mainly for supplying the bottle industry, Wellman said in a Sept. 27 news release.
J.H. Whitney & Co., GarMark Partners and Westwind Equity Partners agreed to buy the Johnsonville assets for undisclosed terms. They already have a foothold in recycling through their investment in New Horizons Plastics Recycling of Greenville, S.C. New Horizons recycles PET for bottles and other markets. Fort Mills-based Wellman characterized the investment firms as specialists in turnarounds and renewable energy.
Wellman said the sale will bring in more funds than a liquidation and will save 160 jobs at the site.