Custom and proprietary molder IPL Inc. is investigating and evaluating strategic alternatives.
IPL's board has set up a strategic review committee of independent directors, and the Saint-Damien, Quebec, firm has hired Ernst & Young Orenda Corporate Finance Inc. to help in the evaluation process.
The board said it is in IPL's best interests to proceed with the review given its strategic objectives and anticipated growth opportunities.
This process, which should allow IPL to recapitalize and finance its growth, is supported by its principal shareholders, IPL Chairman Julien Metivier said in a Dec. 10 news release.
The public company cautioned that there is no assurance that a third party would make or that IPL would accept a proposal.
It's not a problem with debt, Metivier said in a telephone interview. We're in good [financial] shape. We have an aggressive plan for long-term growth and we need capitalization for that growth.
IPL uses injection molding and extrusion at four plants employing nearly 900. It makes more than 400 products for packaging, materials-handling and environmental markets and does custom molding for transportation and other industries.
IPL logged a net profit of C$1.9 million (US$1.8 million) for the quarter ended July 2, up from C$825,000 (US$784,000) a year earlier. Sales slipped 0.7 percent to C$50.9 million (US$48.4 million). Sales of environmental products grew and helped offset declines in other areas.
IPL listed its total debt at C$37.2 million (US$35.3 million) on July 2, down from C$38.9 million (US$37 million) at the end of the previous quarter.
The company's long-term debt to equity ratio on July 2 was 0.47, down from 0.51.
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