Blue Wolf Capital Partners said Wednesday that it’s now the majority equity shareholder of Gloucester Engineering Co., which provides equipment for the plastics extrusion and converting industry. Gloucester Engineering, of Gloucester, Mass., filed for Chapter 11 bankruptcy protection last June and emerged on Dec. 31. Blue Wolf, a New York PE firm, made an initial investment in Gloucester Engineering in May as a secured lender.
Blue Wolf Capital Partners LLC (“Blue Wolf”) announced today that, following the exit of Gloucester Engineering Company (GEC) from Chapter 11 protection, Blue Wolf Capital Fund II is now GEC’s majority equity shareholder.
GEC, based in Gloucester, Massachusetts, is one of the leading providers of equipment for the plastics extrusion and converting industry. The company filed for Chapter 11 Bankruptcy protection in June, 2010 and emerged on December 31. GEC’s European subsidiary, Gloucester Engineering Europe GmbH, exited bankruptcy protection on November 12, 2010. In recent months the company has received more than nine significant orders totaling $12 million from customers in the U.S., Malaysia, Germany, India, Mexico and Taiwan.
“GEC has made tremendous progress in the past 18 months,” said Michael Ranson, Partner at Blue Wolf Capital. “When we first heard of this situation, GEC was mothballed and facing liquidation. Working closely with GEC, we helped restructure the company and today it is on track for a future of solid performance as an innovative American manufacturer. Blue Wolf is deeply committed to GEC’s continued success.”
Blue Wolf, which made an initial investment in GEC in May, 2010 as a secured lender, will have majority representation on the company’s Board.
“We are pleased to bring this great company into our portfolio,” said Adam Blumenthal, Managing Partner of Blue Wolf. “This transformation from troubled company to promising industry leader exemplifies Blue Wolf’s ability to recognize value in situations with complex problems and multiple constituencies. We are proud to have worked closely with GEC’s management and with the International Association of Machinists to resolve many of the company’s difficulties and provide the best possible outcomes for all stakeholders. We believe GEC has a bright future.”
Ranson also noted that GEC is starting the New Year with an expanded workforce, resumption of its R&D activities, and a rededication to its joint venture in India, which received a large new order for a 5 Layer 2200 mm film line last month.
About Blue Wolf Capital Partners
Blue Wolf Capital Partners LLC is a private equity firm that invests in companies in which effective management of relationships with complex constituencies, such as government and labor, can change organizations and create value. For additional information, please visit www.blue-wolf.com.
About Gloucester Engineering Co. Inc.
Since its inception in 1961, Gloucester Engineering Company has been a global leader in advancing quality and production limits in the plastics extrusion and converting market. GEC offers a range of innovative system and component solutions, for both new lines and retrofits, that provide customers a competitive edge in applications that include bag making, foam and sheet extrusion, blown and cast film extrusion, and extrusion coating.
GEC manufactures its equipment from its headquarters in Gloucester, MA, USA and through its joint-venture company in Damman, India, Kabra Gloucester Engineering.