Bankruptcy courts in both the United States and Canada entered sale orders on Monday (July 20), approving the sale of Indalex Holding Corp. assets to Sapa, a Swedish firm, in accordance with the terms of the asset purchase agreement previously entered into between the companies, according to a news release.
Indalex and Sapa continue to work to resolve certain conditions to closing and remaining mechanics of the sale and anticipate a closing of the transaction to occur on July 31.
Under the agreement, Sapa would acquire Indalex’s 10 active plants in the U.S., including the Elkhart, Ind., plant which provides aluminum extrusions for the RV and manufactured housing industries, and Canada. Indalex’s sales in 2008 were about 200,000 tons which represented sales of just above $900 million. Indalex has about 1,400 employees.
Indalex, based in Lincolnshire, Ill., is the second largest producer of soft alloy extrusion products in North America. It filed voluntary petitions for Chapter 11 reorganization in the U.S. on March 20, and the company’s Canadian operations commenced restructuring proceedings in Canada under the CCAA on April 3.
The transaction would allow Sapa to improve its geographical presence in North America, including an introduction into the Canadian region. Also, Sapa would be better positioned to service customers through improved painting, anodizing and fabrication capabilities. In addition, Sapa would be able to optimize customer value through the combined knowledge, experience and technical competence of the two companies.
The agreement is part of a motion filed with the bankruptcy court in Delaware, along with sale and bid procedures. A parallel motion has also been filed with the Ontario Superior Court of Justice in Toronto, with respect to the sale of Indalex’s Canadian assets and business.