Magnifoam Technology International Inc. is closing in on acquiring RBX Corp.'s last manufacturing division.
Magnifoam, through its newly formed subsidiary MTI Groendyk Inc., has signed an agreement to purchase RBX's Groendyk operation, a maker of a variety of industrial silicone products based in Buchanan, Va.
But the deal has a way to go before it can be completed.
RBX is in Chapter 11 proceedings and the U.S. Bankruptcy Court in Roanoke, Va., will auction off the Groendyk assets-including its plant and equipment-Aug. 16. The transaction also is subject to normal due diligence and the court must approve the final sale.
MTI would be considered the front-runner to acquire the Groendyk manufacturing site because the definitive agreement it signed with RBX gives it a favored position in the bidding process, an MTI spokesman said. But it is not a guarantee the deal will go through.
``There's no certainty we'll get the business,'' said Bill Neill, president and CEO of Mississauga-based Magnifoam Technology. ``The decision will be made Aug. 16. We won't have a statement until then.''
The sale will mark the sixth plant RBX has sold in the last two months. It essentially removes the company from the rubber mixing and the closed cell foam businesses.
RBX has sold three silicone foam plants to Armacell L.L.C., its rubber custom-mixing factory to Robbins L.L.C. and on Aug. 3 its Rubatex rubber foam operation to Sedo Chemicals Neoprene GmbH.
Roanoke-based RBX filed for Chapter 11 bankruptcy protection Feb. 24 for the second time in three years. The company also was in Chapter 11 from December 2000 to August 2001.
Magnifoam Technology and MTI design, develop and make custom-engineered products using silicone and other cellular materials.
The parent company operates three primary businesses: Silicone, Aerospace and Fabricated Products.
The firm's manufacturing divisions produce silicone foam using patented technology, and design and fabricate energy management systems from a variety of flexible materials.
The company produces and distributes specialty silicone elastomer goods through a wholly owned subsidiary, Leewood Elastomer GmbH, primarily for the aerospace and mass transit markets. It also makes products for the sporting goods, automotive, industrial, medical and electronics industries.