COLUMBUS, Ohio (March 27) — Lancaster Colony Corp. has sold its Wapakoneta, Ohio, automotive rubber accessory plant to a private equity firm as part of its ongoing review of noncore operations.
The sale to KN Rubber L.L.C., announced March 26, includes all assets associated with its accessory business at the facility. KN Rubber is a portfolio company of New York-based Kinderhook Industries L.L.C.
While the company did not release the sale price, it did say the cash transaction would result in a pretax gain of $1 million to $2 million, reflected in the company´s third-quarter ending March 31. The Wapakoneta operation, which employs about 200 and produces rubber truck bed mats for pickup trucks and truck and trailer splashguards, generated net sales of about $26 million in fiscal 2006, Lancaster Colony said.
A company spokesman said the firm more than a year ago started a full review of its nonfood-related operations and began looking for strategic alternatives for some of its businesses within the automotive and candle and glass segments.
The divestiture of the automotive accessory business was "consistent with our objective if minimizing our exposure to the transportation sector," said John B. Gerlach, Lancaster Colony chairman and CEO.