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Last Updated: Mar 31, 2009 - 2:29:20 PM |
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The Riverbend Industries flag flying over the former Victor Plastics facility. Mitch Traphagen Photo
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NORTH LIBERTY, IA – River Bend Industries of Fort Smith, Arkansas, has acquired Victor Plastics, Inc. following a bankruptcy court auction. The deal closed April 22, according to Ron Embree, president and chief executive officer of River Bend Industries. The acquisition will save approximately 300 jobs in the eastern Iowa area.
Victor Plastics filed for Chapter 11 bankruptcy protection on January 15, 2008 in U. S. Bankruptcy Court, District of Minnesota in Minneapolis. Victor Plastics, founded in 1983, has plants in Victor and North Liberty, Iowa.
River Bend Industries and its predecessor companies have been a leader in plastic injection molding for more than 40 years. It is a supplier to Whirlpool, Exide Industries and the Husqvarna Group of Sweden.
“Two years ago our company faced many of the challenges that Victor Plastics sees today,” said Ron Embree. “With our employees and customers we have made a tremendous turnaround.” In 2006, River Bend acquired soon-to-be-closed custom molding facilities based in Fort Smith and has been very successful reorganizing and operating that business.
River Bend Chairman Chuck Butler said “this acquisition significantly complements our existing successful operations in Fort Smith, Arkansas. Our current customers and employees were the key to making this deal very attractive to us.”
Both Butler and Embree noted that the integration of Victor Plastics into the River Bend Industries portfolio enhances the company’s position as one of the largest custom molders in the United States.
"Ron Embree is demonstrating his ability to maintain the plastics business for our present work force including adequate salary levels," said Leonard Seda, DVM, president of the Victor Community Development Association. "We are extremely excited about having a buyer of this caliber," Dr. Seda said. "There are about 200 employees at the Victor plant and 200 employees at the North Liberty plant, so it's a big deal in our rural community to keep the jobs in this industry."
Palomino Capital LLC of Dallas represented River Bend while Chicago-based MorrisAnderson was retained by Victor Plastics as its investment banker.
See this week's East Iowa Herald for more on this story
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