Tag Archives: aluminum extrusion

Aluminum Extrusions Inc. seeks buyer for business

 The Fabricator - A publication of the Fabricators and Manufacturers Association, Intl.

Aluminum Extrusions Inc., an aluminum extruder in Senatobia, Miss., has retained Equity Partners HG to seek a buyer for the business. The company offers end-to-end service, including extrusion, fabrication, painting, packaging, and shipping.

The 115,000-sq.-ft. facility once employed more than 200 people. In August 2015, a fire in the paint building destroyed the paint line; because most customers required painted aluminum, they moved their business elsewhere. As a result of this loss in sales, the company filed a voluntary petition for relief under Chapter 11 of the Bankruptcy Code in July 2017 and now operates as a debtor in possession.

John King, president of AEI, commented, “The fire created a significant cash constraint for the company. Once we complete a sale and emerge from bankruptcy, I believe our quality and service will bring back those customers that went elsewhere. I’m already getting calls from groups asking about the timing of this process.”

A sale of assets will take place in the next 45 days. The company, which has a workforce in place, can extrude 6-in. billet, which allows for small, intricate extrusions. It extrudes the standard 6063 and 6005 alloy series. Sawing capabilities are 6 to 25 ft., which holds aluminum standard cutting tolerances. The firm also can hold specified cutting tolerances to +/- 1/16 in.

The Ransburg Gema vertical paint line that was rebuilt after the fire in 2015 uses polyester baked enamel that exceeds AAMA 2603 specifications and can process 90,000 lbs. of painted aluminum per day in lengths up to 20 ft.

Aluminum Extrusions, Inc.

The Client

Aluminum Extrusions, Inc.

An aluminum extrusion company in Mississippi that served a number of prominent window and door manufacturers.

The Challenge

The Company had lost a majority of its customers due to an extended shut down after a fire in the paint building and was forced to file Chapter 11. Ownership had been speaking with groups trying to facilitate a sale for months, but with DIP financing running out and no working capital, a shutdown and liquidation was looming.

The Process

Equity Partners was retained to run a quick, but extensive marketing process and had 71 groups execute confidentiality agreements. Multiple groups visited the facility and made offers for consideration as the stalking horse. A stalking horse offer was selected within 5 weeks of EP’s retention and an auction was scheduled less than 4 weeks later.

The Solution

Through a competitive bidding process, the final sale price increased 69% from the initial bid and closing occurred 10 days later. The entire process from retention to closing was completed within 10 weeks, recovery for the estate was maximized, and jobs were retained and operations continued in place.