Nashotah-based plastics manufacturer Techniplas has completed the Chapter 11 bankruptcy sale process of its core assets to a group of existing owners.
The company, which makes products for the automotive, transportation and industrial markets, is now owned by a group that includes Bayside Capital, Amzak Capital Management and The Jordan Company. The new owners have contributed more than $50 million in new capital to improve the company’s balance sheet.
Techniplas had $175 million in outstanding notes that were to mature on May 1 and $17 million in borrowing due under a credit agreement when it
filed for bankruptcy in early May. The company reached an agreement with its noteholders to provide financing to reach bankruptcy and finance the company through mid-June during the bankruptcy process.
Ali El-Haj will continue as chief executive officer of the company under its new ownership. El-Haj became CEO in 2019 when The Jordan Company provided additional investment in Techniplas.
"I am excited to lead Techniplas into our next chapter, strengthened with a right-sized balance sheet and backed by our investors, who have proven experience in supporting companies like ours through the next phase of growth. We enter this new phase with renewed energy and enthusiasm to meet the needs of our strategic customers," El-Haj said.
Techniplas had around 720 employees when it filed for bankruptcy, plus another 190 let go just before the filing as the company began closing plants in Auburn, Alabama and Ankeny, Iowa.
The Alabama and Iowa plants were sold during the bankruptcy process to Michigan-based Revere Plastics Systems for $1.9 million.
Techniplas primarily makes parts for the automotive and transportation industries, including those used in fluid and air management, decoration, personalization and structural components. Non-automotive parts include power utility and electrical components and water filtration products.
Last year, Techniplas had $475 million in net sales, a drop of 10.2% from 2018. It’s Wisconsin and Iowa operations did see a combined sales increase of $2.6 million or 3.6%. The company had a net loss of $21 million in 2019.
The company acquired Dickten Masch Plastics in 2010 and then expanded with other acquisitions including Nyloncraft Inc. in 2012, a production facility of NYX Inc. in 2013, Weidmann Plastics in 2014 and Vallotech in 2015.
