Engineered Plastic Components Inc. has acquired the assets of injection molder Innatech LLC through a sale with the U.S. Bankruptcy Court.
Innatech's operations will close, and the work will be folded into its EPC's existing eight plants, an EPC official said.
EPC, based in Grinnell, Iowa, has no specific timeline for the consolidation, but said most of the work from the auto supplier will go to its existing facility in St. Clair, Mich.
The acquisition happened very quickly, said EPC's CEO and President Reza Kargarzadeh in a June 7 telephone interview.
Innatech filed for Chapter 11 protection March 23 with the bankruptcy court in Detroit. The court approved a May 19 auction, with a private buyer operating under the name Innatech Holdings LLC set as the stalking horse bidder, and expected to complete a purchase, according to court documents. That buyer backed out May 12, however, which opened up the need for another buyer and a second auction date May 26.
Innatech has operations in Rochester, Mich.; Lebanon, Ohio; and Richmond, Ind. It has both molding and its own toolmaking facility and 147 employees.
EPC already has contacts in the auto industry and a history of taking over existing business, including distressed sites from bankruptcy. It previously purchased plants from the former Collins & Aikman Corp., and Blue Water Automotive Systems Inc. and has plants in the U.S. and Mexico.
Our formula has been successful, Kargarzadeh said.
Innatech's customers were already familiar with EPC, and the company was able to quickly evaluate and put together a bid covering an existing $7.35 million loan and other costs.
With the addition of Innatech, EPC will become a top multishot injection molder, Kargarzadeh said. It will have 50 multishot machines with the capability of producing up to four shots.
The acquisition also adds more capability in mold making and brings its annual sales to more than $100 million.
It's a company with a lot of innovation in tooling and processing, Kargarzadeh said.
EPC will be looking for other acquisitions in 2010 and 2011, he added.
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