DETROIT -- Supplier Engineered Plastic Components Inc. has acquired the assets of plastic parts maker Innatech LLC through a sale in U.S. Bankruptcy Court.
Innatech's operations will close, and the work will be folded into its EPC's existing eight plants.
EPC, based in Grinnell, Iowa, has no specific timeline for the consolidation, but said most of the work from the auto supplier will go to its existing facility in St. Clair, Mich.
The acquisition happened very quickly, said EPC's CEO and President Reza Kargarzadeh in a Monday telephone interview.
Innatech filed for Chapter 11 protection with the bankruptcy court in Detroit on March 23. The court approved a May 19 auction with a private buyer slated as the preferred bidder or "stalking horse." That buyer backed out on May 12, however, which opened up the need for another buyer and a second auction date on May 26.
Innatech has operations in Rochester, Mich.; Lebanon, Ohio; and Richmond, Ind. It has 147 employees.
EPC, which has plants in the United States and Mexico, already has contacts in the auto industry and a history of taking over distressed or bankrupt operations. It previously purchased plants from the former Collins & Aikman Corp., and Blue Water Automotive Systems Inc.
“Our formula has been successful,” Kargarzadeh said.
Innatech's customers were already familiar with EPC, and the company was able to put together a bid covering an existing $7.35 million loan and other costs.
EPC will be looking for other acquisitions in 2010 and 2011, Kargarzadeh said.