Sale of Florida Extruders International Assets to Benada ClosesJune 21st, 2011 | Category: Industry News
Benada Aluminum Products LLC, an aluminum extrusion company based in Medley, Fla., announced that its purchase of Florida Extruders International Inc.’s (FEI) assets closed on June 20.
Two bids were submitted for the assets of FEI last week during an auction. According to court documents, Speyside Acquisition submitted an initial bid of $8,400,000 cash with a good faith deposit of $1,000,000. Benada Aluminum Products submitted a bid at the same price and made a good faith deposit of $1,000,015.
In addition to the sale of FEI, St. Louis-based private-equity firm FTL Capital LLC has purchased the former Benada Aluminum of Florida Inc.’s assets and has formed a new company, Benada Aluminum Products LLC.
BAF previously was owned by Monte Friedkin, who has been in the aluminum extrusion business for more than 50 years and now will serve as president and chief executive officer of Benada Aluminum Products. He says the new company will serve the residential, commercial and industrial extrusion market.
“Really this was a simultaneous closing,” Jake Sturdy, vice president, FTL Capital, tells DWM magazine. “We were intrigued by this bankruptcy process but it only made sense if Monte and his organization were involved. We wouldn’t have done without the other.”
“We are very excited for the potential to increase market share and reduce costs by combining the assets and operations of FEI and BAF,” says Friedkin. “Our extensive industry experience coupled with FTL Capital’s resources and financial and strategic leadership capabilities provides Benada with a solid foundation for profitable growth in future.”
“By acquiring the assets of FEI at an attractive price and combining these with the assets and operations of BAF under Monte’s superb leadership, Benada becomes an exciting platform on which to build a highly successful aluminum products company,” adds Paul Melnuk, chairman of Benada and a principal of FTL Capital.
Friedkin tells DWM magazine that consolidation of plants will occur but did not disclose additional details at press time.
“Just from an operational perspective it makes sense to consolidate,” adds Sturdy.