ELORA, Ontario (Nov. 19)—The assets and liabilities of rubber processor Polycorp Inc. are being acquired by the firm's president and CEO, Peter Snucins, who plans to rename the company Atlas Cromwell Ltd. The sale is still conditional upon approval by a majority of the minority shareholders of Polycorp; a special shareholders' meeting has been called for Dec. 18 to approve the sale. Snucins will effect the purchase through 2006791 Ontario Inc., a corporation he indirectly controls, according to Polycorp, a producer of extruded and calendered polymer products for the railroad and mining industries. The sale price is $1.64 million. Polycorp's board of directors sought to sell the firm's assets at this time because of a downturn in the firm's fortunes, linked primarily to the loss of a contract with CSX Corp. That development has left the firm with falling earnings and lower sales in the three reporting quarters since CSX awarded the contract to a competitor. Polycorp's fiscal 2001 net earnings fell 83 percent, to $174,149, while sales slipped 12.4 percent to $10.5 million. Polycorp originally was a Kitchener, Ontario-based business unit of B.F. Goodrich Co. It moved to its present 55,000-sq.-ft. plant in Elora in 1996.
CEO acquires Polycorp assets
Rubber & Plastics News wants to hear from its readers. If you want to express your opinion on a story or issue, email your letter to Editor Bruce Meyer at [email protected].