Reunion Resources Company Acquires Oneida Molded Plastics Corporation

Strategic Insights -

Reunion Resources Company has acquired all of the outstanding capital stock of Oneida Molded Plastics Corporation from Chatwins Group, Inc. Oneida manufactures precision plastic products and provides engineered plastics services, operating three injection molding facilities in New York and North Carolina. The acquisition is part of Reunion's strategy to diversify its business, having previously focused on oil and gas operations. Oneida's unaudited results of operations for the six months ended June 30, 1995, showed net sales of $18,263,000, operating income of $1,429,000, and pre-tax income of $868,000.

Key Takeaways:

  • Reunion Resources Company has acquired Oneida Molded Plastics Corporation from Chatwins Group, Inc. for $3,107,000 in cash and the assumption of approximately $10,117,000 in indebtedness.
  • Oneida operates three injection molding facilities in Oneida and Phoenix, N.Y. and Clayton, N.C. and two related tooling facilities.
  • Oneida's principal products include components for office equipment, recreational products, computer and other consumer electronics, and telecommunications equipment.
  • Reunion Resources Company is exploring the sale of its oil and gas operations, which was its primary business prior to the acquisition of Oneida.
  • The company's principal oil and gas properties are located in the Sacramento Basin area of California and the Gulf Coast region of Texas and Louisiana.
  • Reunion Resources Company has retained Petrie Parkman & Co. to advise on the potential sale of its oil and gas business.
  • The company has also retained Prudential Securities Incorporated as financial advisor for the acquisition of Oneida.

Statistics:

  • $23,195,000: Oneida's net sales for the nine months ended December 31, 1994.
  • $742,000: Operating profit of Oneida for the nine months ended December 31, 1994.
  • $95,000: Pre-tax loss of Oneida for the nine months ended December 31, 1994.
  • $18,263,000: Net sales of Oneida for the six months ended June 30, 1995.
  • $1,429,000: Operating income of Oneida for the six months ended June 30, 1995.
  • $868,000: Pre-tax income of Oneida for the six months ended June 30, 1995.
  • 38%: The percentage of Reunion Resources Company's outstanding stock acquired by Chatwins Group, Inc. in June 1995.

Sources:

  • PRNewswire
  • Reunion Resources Company press release
  • Chatwins Group, Inc. press release
  • Petrie Parkman & Co. press release
  • Prudential Securities Incorporated press release