Fortis Plastics LLC, an entity created from the combination of Atlantis Plastics Inc. and L&P Plastics LLC, is consolidating its operations with the planned closure of facilities in LaVergne, Tenn., and Alamo, Texas.
Its parent, Monomoy Capital Partners LP, a New York private equity fund, released a statement Nov. 12 via e-mail citing the ``current state of the economy and its effects on the plastics industry.''
Both plants that will shut down are former Atlantis Plastics facilities.
The company went on to say: ``As part of the effort to strengthen the company's ability to operate as a profitable business, these changes are prudent and necessary to ensure the health of Fortis. The company is working with employees, suppliers and customers to ensure a seamless transition without interrupting the supply of quality products and first-class service.''
Fortis was created after Monomoy purchased the equity and operations of L&P Plastics LLC from Leggett & Platt, Inc., as well as the molded products group of Atlantis Plastics Inc. The firm did not disclose a purchase price for the L&P deal, but said Oct. 8 that U.S. Bankruptcy Court had approved the Atlantis purchase for $23.1 million in cash and the assumption of $7 million in liabilities.
Monomoy said at the time the combination will form a custom molding business for the appliance, furniture, building product and medical-device industries.
The company did not provide further information on the closures.
A Texas Workforce Commission layoff notice list said Fortis had notified the state Nov. 3 that it planned to lay off 90 workers in Alamo by Jan. 3.
The Tennessee Department of Labor and Workforce Development said it had received preliminary word in August that Fortis when it was known as Atlantis had planned to lay off 42 workers in LaVergne. It did not have updated information.
Fortis, according to a spokesman, still has eight plants. It has operations in Carlyle, Ill.; Popular Bluff, Mo.; Booneville, Miss; Brownsville, Texas; Fort Smith, Ark.; Henderson, Ky.; Jackson, Tenn.; and Elkhart, Ind.
Monomoy is a $280 million private equity fund that makes controlling investments in middle-market companies. The fund has completed 18 transactions in little more than two years. It currently owns 12 companies that employ more than 8,000.