Volume 46, Issue 1 - January-February 2011

CompanyNews

Sapa Acquires Arch Extrusion Plant, Closes Vancouver Facility

They say when one door closes, another opens. In this case, as Sapa Extrusions North America sent a letter to customers noting it would be closing its Vancouver, British Columbia, facility around March 31, Sapa Profiles North America was announcing that it had completed an asset purchase agreement to acquire the Arch Extrusion facility in Miami.

The letter sent to Vancouver-area extrusion customers noted that extrusion production in Vancouver would be transferred to the company’s Portland, Ore., facility.

The letter, signed by John Noordwijk, Sapa Extrusion general manager, West region, reads, “We realize that the Sapa Vancouver plant has developed and launched unique customer solutions in several markets despite low volumes and profitability. Sapa will continue to deliver exceptional service solutions, fabrication, anodizing and coating capabilities from its Portland facilities.”

Patrick Lawlor, business area president of Sapa Extrusions North America, is also quoted as saying, “While this was a difficult decision and we realize that change is never easy for our employees or our customers, we are committed to upholding excellent customer relations and offering a wider range of products and services that is truly unique.”

Meanwhile, Sapa said in a statement on its facility acquisition from Arch Aluminum & Glass, headquartered in Tamarac, Fla., that this agreement demonstrates its continuing commitment to the North American extrusion market. As a result, Sapa will be able to offer increased extrusion capacity to serve customers in Florida as well as increased anodizing capability throughout the Southeastern United States.

“This agreement gives us a greater presence throughout the Southeast,” Lawlor says. “The acquisition will help us to provide the market more responsive service and shorter lead times. We will be able to offer our customers a range of extrusion products that is truly unique.”

The Arch facility includes two modern extrusion presses and an anodizing line for both clear and electrolytic colored finishes that meet stringent architectural standards.

According to the statement, Sapa’s acquisition is intended to allow Arch to focus on its core business of glass and metal fabrication throughout the United States and Canada.
www.sapagroup.com

The Dwyer Group Inc. Acquired by TZP Capital Partners
The Dwyer Group Inc., the Waco, Texas-based parent company of the Glass Doctor franchise, has been acquired by an investor group led by TZP Capital Partners I, L.P., a private equity fund based in New York. The transaction, valued at $150 million, closed December 23.

Mark Dawson, president of Glass Doctor, tells USGlass that this new partnership will allow the Glass Doctor franchise to expand further in the United States and Canada and hinted at further expansion opportunities for the Dwyer Group as a whole.

“This will allow us to look at other businesses [in the home services segment] that complement us,” says Dawson, while adding that TZP was an attractive partner as it has a great deal of experience with franchises.

In addition to its franchise concepts, Dwyer also owns and operates 37 full-service glass stores in Maine, Vermont and New Hampshire. Dwyer’s franchisees along with its company-operated stores account for nearly $800 million in annual revenues.
www.dwyergroup.com

Barber Buys Back Retail Operations, Mfg Assets Set for Auction
John Barber has had one bit of good news since his company, Guelph, Ontario-based Barber Glass Industries, was placed into receivership in November (see December 2010 USGlass, page 12). He told USGlass in an interview that a deal to buy back Barber Glass Retail from receiver Grant Thornton Ltd. was completed successfully in early December.

However, Barber’s five attempts to purchase the remainder of the manufacturing segment of the company from its receiver were denied, and on February 2 the Ontario Court approved a motion made by Grant Thornton to auction off the assets of Barber Glass' facilities in Collingwood and Guelph, Ontario.

“The Ontario Court granted the relief sought by the receiver in respect of the assets of Barber Glass,” Daniel Sobel, manager, specialist advisory services for Grant Thornton, told USGlass.

Dates will be posted online by the two auctioneers involved. Asset Engineering (www.assetengineering.com) will be auctioning the Guelph, Ontario, facility assets. The Danbury Group (www.danburysales.com) will be auctioning the Collingwood, Ontario, facility assets.

Barber’s wife Susan made the fifth offer to buy back the company on January 21. The offer was deemed unacceptable by the Grant Thornton for a number of reasons, according to court documents. First, it was less than the aggregate value of the net minimum guaranteed amounts under the two creditor agreements referenced. The agreement contemplated a nominal refundable cash deposit that was not submitted with the offer. Court documents also note that “although the fifth offer is not conditional on financing, Susan Barber has failed to provide evidence of financing despite requests.”

Regarding the retail operation, Barber says, “That business was caught up in the crossfire. They never had any issues. The issues were with our friends at the Bank of Montreal.” Barber notes that the retail operation accounts for 8 percent of the company’s annual sales.

Barber told USGlass in December that he had been working with government and banking officials, and noted that he also has the support of many industry suppliers in these efforts.

“It’s pretty odd the overwhelming support we have had from suppliers,” Barber says. “Some said they will risk credit for a new operation, provided I am in some form of management.”

Barber also offered additional details concerning the events leading up to Grant Thornton placing the company into receivership.

“I thought we had a deal at the bank only to find out at last hour that it didn’t happen,” says Barber, who is the company’s largest single stakeholder.

“We had the largest backlog and the largest receivable in the history of company at the time of the receivership so it’s all hard for us to understand,” he says.

C.R. Laurence Acquires Delta Doors
C.R. Laurence Co. Inc. (CRL) in Los Angeles has acquired Delta Doors in Miami. Originally founded in 1996 by Jesus Martinez as a distribution center for doors and storefront materials, Delta Doors later shifted into manufacturing aluminum doors, windows and framing systems.

“Delta Doors is considered the ‘major force’ in doors and window wall systems and is one of the few companies meeting all of Miami-Dade County (Fla.) air, water, structural and impact requirements,” says Lloyd Talbert, president of CRL.

According to the announcement, all Delta employees will be joining CRL, including founder Jesus Martinez and Carlos Martinez, who has led the sales efforts and managed production.
www.crlaurence.com

Central Glass to Purchase Certain Zeledyne Assets
Zeledyne LLC announced the signing of definitive agreements for the sale of its Nashville Glass Plant and Carlite warehouse operations and automotive glass aftermarket business to Central Glass Co. Ltd. Central Glass is a Japan-based manufacturer of automotive, architectural and other glass products.

The two companies expect the sale to close early this year. Terms of the deal have not been disclosed.

Zeledyne has 1,300 employees working at three manufacturing plants in Nashville, Tulsa, Okla., and Juarez, Mexico; warehouse operations in Lebanon, Tenn.; and headquarters in Allen Park, Mich. Zeledyne exited the commercial glass business in January 2010 (see February 2010 USGlass, page 10).


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