Newcor agrees to management buyout of Midwest Rubber & Plastic

ROYAL OAK, Mich. (Sept. 23)—Newcor Inc. has entered into an agreement to sell the assets of its Midwest Rubber & Plastic Inc. subsidiary, one of three operations in its Rubber & Plastic reporting segment, to a group led by local management. Midwest, which primarily makes dip molded parts for the automotive industry, has represented less than 10 percent of Newcor's sales and net income in recent years, the company said in a release. Newcor said it expects the asset sale will generate in the range of $4 million to $5 million in cash, which will be used to reduce its debt load. The deal also will include certain limited additional contingent and non-contingent factors which are expected to generate additional cash receipts over the next several years. Newcor, a division of holding company Exx Inc. since its emergence from Chapter 11 in March, expects the deal to close in the fourth quarter.