Global Fastener News

November 21, 2011 FIN – Germany’s Würth Group purchased Cardinal Fastener & Specialty Co. for $3.9 million at auction, Crain’s Cleveland Business reports.
Judge Pat E. Morgenstern-Clarren of the U.S. Bankruptcy Court in Cleveland approved the sale on Oct. 27. The judge also waived the customary 14-day waiting period to close on the sale of a bankrupt company, paving the way for Würth to close the deal quickly.

Marc Strandquist, CEO of Würth’s Michigan-based Dokka Fasteners unit, will oversee Cardinal going forward as it continues to operate locally under current president John Grabner.

“Step one will be to resupply Cardinal, a maker of bolts and other fasteners, with working capital so it can buy more inventory,” wrote Crain’s reporter Dan Shingler. “Four people are slated to be added to increase sales and to stabilize relationships with existing customers who need to know that Cardinal is secure financially.”

Strandquist said Würth would invest further in Cardinal to expand it.

“We plan to bring in about $1 million worth of new equipment” over the next year, stated Strandquist.

By the end of 2012, Würth hopes to return Cardinal to its previous operating capacity, with projected sales of $10 million and a doubling of its headcount to more than 50 workers by the end of next year.

At the fastener show in Las Vegas, Grabner told GlobalFastenerNews.com that his company’s growth continued to be strong — just not enough to pay for needed wind energy investments. Now he says Cardinal will be able to grow faster under Würth’s ownership.

Cardinal had nearly doubled its revenues in four years with wind energy fasteners, supplying more than a dozen wind turbine builders, including the Danish wind manufacturer Vestas and the Spanish Gamesa SA.

But court records indicate Cardinal owes Wells Fargo $1.8 million and the Grow America Fund of the nonprofit National Development Council more than $850,000. Approximately 200 unsecured creditors are owed an additional $3 million.

Grabner said Cardinal will now be able to grow fastener under Würth’s ownership. “We will no longer have any restrictions on growth,” Grabner told Crain’s. “The money was always the limiting factor.”

Würth reportedly intends to keep Cardinal operating at its existing location and under its existing name.

Cardinal received worldwide publicity for its wind energy fastener manufacturing when President-elect Barack Obama toured the plant enroute to his 2009 inauguration.

Cardinal Fastener is located at 5185 Richmond Rd., Bedford Heights, OH 44146. Tel: 216 831-3800 Web: cardinalfastener.com  ©2011/2012 Fastener Industry News
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