Monomoy Capital Partners, a New York-based turnaround firm, has acquired the Molded Products Group of Atlantis Plastics Inc. for $27 million in cash and the assumption of $7 million in liabilities. The company has $110 million in revenues. Monomoy plans to combine the business with L&P Plastics, another carve-out the firm completed in recent weeks.
Monomoy Capital Partners, L.P., a New York private equity fund that makes controlling investments in middle market companies, announced today that it has received final bankruptcy court approval to acquire the molded products group of Atlantis Plastics, Inc. for $23.1 million in cash and the assumption of $7 million in liabilities. The transaction is expected to close within a few days.
The Atlantis molded products group is a $110 million manufacturer of custom plastic components for the appliance, recreational vehicle, building products and automotive industries. The business employs more than 900 associates and it operates extrusion molding facilities in Elkhart, Indiana and injection molding facilities in Ft. Smith, Arkansas; Henderson, Kentucky; Jackson, Tennessee; LaVergne, Tennessee; Alamo, Texas and Elkhart, Indiana and. The division’s largest customer is Whirlpool, Inc., the leading manufacturer of home appliances in North America.
Monomoy will combine the Atlantis molded product group with its recent acquisition of L&P Plastics from Leggett & Platt (NYSE: LEG) to form a diversified custom molding business for the appliance, furniture, building products and medical device industries.
“The Atlantis acquisition is an important step in building a strong Monomoy platform in the custom plastic molding industry,” said Stephen Presser, a Monomoy principal. “We look forward to working with the current management team to strengthen and extend Atlantis’ 50+ year relationship with Whirlpool, and we are excited about the opportunity to combine the Atlantis and L&P Plastics operations to create a profitable, growing plastics business in a challenging economic environment.”
“Monomoy is a great fit for our business,” said Ken Comer, head of the Atlantis molded products group. “After working with the Monomoy team over the past two months, we are confident that Monomoy will help us improve every aspect of the company and that we will continue to improve our products and customer service under Monomoy ownership.”
The Atlantis transaction marks the fifth Monomoy acquisition in the past four months, joining Carlton Creek Ironworks (an iron foundry acquired in July), the Boston Apparel Group (a catalog and internet retailer of women’s clothing acquired in August), Katun Corp. (an imaging supply company acquired in early September) and L&P Plastics (a custom plastic molder acquired in late September). Richard Porter and Kester Spindler of Kirkland & Ellis represented Monomoy in the transaction. Crowe Horwath LLP and Freed Maxick & Battaglia, PC provided accounting and financial advice.
Andrew Turnbull of Houlihan Lokey advised Atlantis Plastics, Inc. on the sale. David Kurzweil of Greenberg Traurig, LLP provided legal representation to Atlantis.
About Monomoy Capital Partners, L.P.
Monomoy Capital Partners, L.P. is a $280 million private equity fund that makes controlling investments in middle market companies. The Fund has completed 18 transactions in the smaller end of the middle market over the past 30 months and currently owns 12 businesses that collectively employ more than 8,000 people. Monomoy implements customized business improvement programs in all portfolio companies that reduce operating expenses, increase profitability and encourage profitable growth. For additional information on Monomoy and its portfolio companies, please visit www.mcpfunds.com.