Global Fastener News

BlackEagle Partners Buys Rockford Products

Jason Sandefur

Michigan buyout firm BlackEagle Partners won court approval for its bid to buy bankrupt Rockford Products Corporation’s cold formed division for as much as $23.2 million, the Associated Press reports.
During the auction, Rockford Products reportedly received a second bid of $23 million from Texas-based Stoutheart Corp., forcing BlackEagle to increase its offer by $300,000.
BlackEagle’s winning bid came days after Rockford Products received court approval to conduct a quick auction of its auto fasteners division, which reportedly includes about $24 million in inventory.
While selling off its two smaller divisions, Rockford Products had been unable to ink a deal for its cold-formed products division, which employs about 400 workers to manufacture ball studs, brackets and specially engineered bolts for the automotive industry, as well as for such larger customers as Federal-Mogul Corp. and Caterpillar Inc.
Rockford Products claimed in an October court brief that it had “run out of money and time.” The company reportedly has more than $11 million outstanding with its top 20 unsecured creditors, and a total of 900 creditors are owed undisclosed sums.
Proceeds from the sale will be used to pay Rockford Products’ primary lenders, Bridge Opportunity Finance LLC and Bridge Healthcare Finance LLC, who are owed more than $19 million for providing “bridge” financing.
Slow automotive products sales and rising pension costs forced Rockford Products to file for Chapter 11 bankruptcy protection on July 25. The company, which was founded in 1929 as Rockford Screw Products, reported 2006 sales of $101 million. Web: rockfordproducts.com �2007 FastenerNews.com