Medical firm Porex selling for $142M
FAIRBURN, GA. HLTH Corp. is set to sell its porous plastic filters company, Porex Corp., in a $142 million deal to a California private equity group.
Los Angeles-based Aurora Capital Group will pay $74.5 million in cash at the deal's closing and the remaining $67.5 million in secured debt, which will be paid off at $10 million per year for the first three years on the anniversary of the closing and the remaining $37.5 million in the fourth year.
HLTH and Aurora expect to complete the sale during the fourth quarter of 2009. Aurora also owns injection molder United Plastics Group Inc.
The agreement, announced in a Sept. 18 news release, wraps up a long search by HLTH of Elmwood Park, N.J., for a buyer for Porex, which specializes in plastics for the medical industry. Porex is based in Fairburn and has additional operations in Germany, Scotland and Malaysia.
The deal comes as HLTH and WebMD Health Corp. work to complete a merger agreement announced in June. HLTH owns 83 percent of New York-based WebMD, but the merged company will be called WebMD. The companies have said the action will reduce costs by having a single management structure. HLTH and WebMD previously attempted to merge in 2008, but had to call off the deal because of difficulties in the credit market.
California's effort to ban BPA falters
SACRAMENTO, CALIF. An attempt to ban the use of bisphenol A in baby bottles, baby cups and infant formula cans in California has failed.
The bill received a majority of votes in two separate votes last week in the state Assembly, but fell six votes short of the 41 needed for passage. It was then moved to the inactive file Sept. 11 at the request of Assembly Majority Leader Albert Torrico, D-Fremont, so it can be considered again in 2010.
The proposed ban had passed the Senate 21-16 on June 2, and received a majority 35-31 vote twice in the Assembly on Sept. 7, but proponents could not muster the additional votes needed for passage.
The California bill would have banned the manufacture, sale and distribution of any liquid, food or beverage that comes in a bottle or cup that contains more than 0.1 parts per billion of BPA and is intended for use by children 3 or younger.
It also would have banned the use of BPA as a liner in powdered infant formula cans, but not liquid infant-formula cans.
It is a shame that we have failed to protect our most vulnerable citizens from BPA, said Sen. Fran Pavley, D-Santa Monica, a co-sponsor of the bill. She said she will renew her effort to protect children from BPA in the next legislative session.
Delphi to close Miss. site, cut 280 jobs
TROY, MICH. Auto supplier Delphi Corp. is closing a plastics plant in Clinton, Miss., and shifting production to another plant in Warren, Ohio.
The closure will affect 280 jobs in Clinton. Warren will add 70 positions, filling them from its pool of laid-off employees, said Delphi spokeswoman Rachelle Valdez.
Both plants are part of the Troy-based company's Packard Electric unit, which injection molds connectors, and makes cables and other plastic moldings for automotive electrical systems.
Clinton will close by the end of this year, Valdez said. The change is a direct result of slowing auto production in North America.
DimcoGray adds all-electric Toyo at HQ
CENTERVILLE, OHIO Knob and handle molder DimcoGray Corp. has bought its first all-electric injection molding machine a Toyo press with 150 tons of clamping force as part of a modernization plan for its headquarters plant in Centerville.
The Toyo press is injection molding thermoset resins, but DimcoGray will have the option of molding thermoplastics by changing to a new screw and barrel, President and CEO Mike Sieron said. DimcoGray currently does both processes on dedicated equipment. The company uses compression molding machines for its thermoset molding.
The Toyo was selected because it can easily run both types of plastics, Sieron said.
DimcoGray molds millions of knobs a year for a range of products such as lawn mowers and exercise equipment. But officials now are more focused on markets for farm and construction machinery, mechanical controls and medical products with DimcoGray's knob and handle business, Sieron said.
That was another reason to try an all-electric press, Sieron said: DimcoGray could add more new injection presses if it does well in medical molding.
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