More Integra pieces sold off

Parts of Integra Integrated Procurement Solutions, Northbrook, IL, which had revenues of $217 million in 2001, continue to be sold through Chapter 11 bankruptcy proceedings, as previously reported in the past two issues of MDM (please go to www.mdm.com for these archived stories and more). Asset sales through the bankruptcy court have totaled more than $13 million, subject to adjustments in each deal, with about a third of Integra's assets remaining to be sold, probably in smaller liquidation sales, according to the bankruptcy attorney.

Here are the latest developments, as related to MDM by William Kohn, Integra's primary bankruptcy attorney:

• Sanders Tools & Supplies, Peoria, IL was sold to Sanders Acquisition Corporation, a group including company managers, in an asset purchase for a base price of $6.3 million, subject to adjustments. Sanders, with a small branch in Itasca, IL, is a cutting-tool specialist with a CNC grinding shop. Caterpillar represents 50% of its revenues, with Krupp Gerlach and Electro Motive as other large customers.




• Indusco Group, Baltimore, MD, bought assets of R/W Connection, Landisville, PA. Also known as Rubber World, this unit was the rubber division of J. Fegely & Sons Hardware, a custom fabricator and distributor of industrial and hydraulic hoses, conveyor belting and rubber sheet products and gaskets. The purchase agreement was for $6.2 million, subject to adjustments, with inventory valued at roughly $2 million.




• Allar Automotive, Sterling Heights, MI, Integra's automotive division, was sold to H&P Technologies, Warren, MI, for $611,000 in an asset purchase.




• About 35% of Integra remains in terms of inventory value as of this week, Kohn told MDM. That includes inventory and assets at standalone branches of J. Fegely & Son in Pennsylvania and Red River Tool & Supply in Fargo, ND (KSC Supplying Industry).




• A resolution accepted by the Integra creditors committee outlines a distribution of money to Sanders' creditor suppliers in the amount of about 20% of what is due to them, Kohn told MDM. Following that distribution, the chance for Integra's suppliers to realize payment drops considerably, Kohn said, as investors are next in line.
  The U.S. Bankruptcy Court for the Northern District of Illinois approved the sale of the above three Integra divisions the day after a public auction on Apr. 17. The remaining assets will be sold over the next 45-60 days, according to Kohn, to maximize the value.

Sanders emerges

Sanders Tools & Supplies will return to its core business as a specialty metalworking distributor, with 90% of its business in cutting tools, gages, work-holding equipment and abrasives, Hunt Taylor, Sanders' president, told MDM. An equity group that includes some Sanders managers has scrambled over the past six weeks to assemble a letter of intent, financing and hold customer and vendor relationships together during the Integra bankruptcy proceedings, which was filed on Mar. 12.

'Our 43 employees dug in and really kept things together,' Taylor said. 'We now have 95% of our vendors up and running and offering us trade terms. It has been extremely difficult in the middle of a recession, but the employees made it happen.' The new Sanders will operate out of two locations in St. Charles and Peoria.

Precision buys Ross-Willoughby

The court previously approved the sale of assets, trade name and customer sales/services information at three Ross-Willoughby locations in Ohio and North Carolina to Precision Industries, Omaha, NE. Precision said in a press release that it has all the necessary brands and franchises to fulfill open orders for Ross Willoughby and is doing so. Precision has hired the Integra/Ross Willoughby staff in Lima and Canton, OH, and Charlotte, NC.

Precision plans to immediately expand the Ross-Willoughby product offering to include Precision's other product categories in power transmission, electrical, rubber products, material handling, fastener, safety and fluid power.

March 25 MDM article on Integra Ch. 11 filing