Citadel Plastic Holdings Inc. remains an active buyer, completing its fifth plastics deal by purchasing Fiberfil Engineered Plastics Inc. for an undisclosed price.
Stoney Creek, Ontario-based Fiberfil makes glass- and mineral-filled compounds based on nylon and polypropylene for automotive, furniture and appliance markets. The firm has been in receivership since late July, after struggling with cash-flow problems, Citadel Chairman and CEO J. Michael Fitzpatrick said via phone Sept. 3, the day the deal was announced.
Citadel of Radnor, Pa., is buying Fiberfil from company executives John Wilkie, Les Kowalski and Steve Kernohan. Wilkie, Kowalski and former investor John Samuels had acquired it from DSM Engineering Plastics Inc. in late 2005. Fiberfil has annual sales of $15 million to $20 million.
Citadel plans to close Fiberfil's 28,000-square-foot plant by the end of the first quarter of 2010. Some of the site's equipment will be moved to storage, and some to a site in nearby Guelph, Ontario, operated by Aclo Polymers Inc., a previous Citadel acquisition. Fiberfil operated four single-screw extrusion lines and one twin-screw line.
This is a very welcome addition for us, Fitzpatrick said. We'll continue to look for ways to grow our thermoplastics and thermoset businesses.
According to Wilkie, Fiberfil's financial problems were caused by fluctuations in the value of the Canadian dollar and high resin prices in 2008.
We have a great customer base, but we got hammered on working capital, said Wilkie, who spent 29 years with the business under various owners. I'm extremely proud of the work our people did here under the circumstances.
After the plant closes, Wilkie and Kowalski will leave the firm, while Kernohan will take a position with Matrixx Group, another Citadel acquisition. Less than 10 of Fiberfil's 45 jobs are expected to move to the Guelph plant.
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