Monomoy buys bankrupt plastics group for $23m

The New York-based firm continues to purchase industrial assets-based businesses, having purchased its second plastics company in two weeks.

A US bankruptcy court gave final approval this week to the $23 million sale of Atlantis Plastics' molded plastics group to Monomoy Capital Partners.

The New York-based firm announced the deal in August but needed final court approval for the sale. Mayank Singh, a vice president with Monomoy, said the transaction was a straight sale of Atlantis’ assets rather than any kind of reorganisation of the company.

“Atlantis had too much debt; we’re buying the assets free and clear,” Singh said. “They have a good team, a good business.”

Atlantis' molded products group is a $110 million maker of custom plastic components for the appliance, recreational vehicle, building products and automotive industries. The business has 900 employees, and the molded plastic group’s largest customer is Whirlpool.

Monomoy purchased L&P Plastics, which makes parts for power tools, medical devices, furniture and vehicles, late last month for an undisclosed amount. The firm said L&P will be combined with the Atlantis assets to form a custom molding business for the appliance, furniture, building products and medical device industries.

The Atlantis acquisition is the firm’s fifth in four months, including the purchase of Carlton Creek Ironworks, an iron foundry bought in July; the Boston Apparel Group, a catalog and internet retailer of women’s clothing acquired in September and Katun, an imaging supplier acquired in September.

Singh said the turbulent financial markets are the perfect time for Monomoy to acquire industrial businesses that have hard assets.

“This is the right environment for us, given what we do,” Singh said.

Monomoy is currently investing from a $280 million fund that closed in February 2007. The firm makes controlling investments in mid-market companies.