Field Fastener Acquires Rockford Products’ OEM Distribution Business

John Wolz

Field Fastener acquired one of the two distribution portions of the Rockford International distribution business of Rockford Products Corporation for $300,000.\
The deal comes just weeks after reports that MacLean-Fogg Co. ended its effort to buy Rockford Products” cold formed products division. MacLean-Fogg had reportedly expressed interest but never made an offer for that operation.
Slow automotive products sales and rising pension costs forced Rockford Products to file for Chapter 11 bankruptcy protection on July 25.
Field president Bill Derry told FastenerNews.com said Rockford”s OEM distribution arm offers “a great deal of synergy between what they did and we do.” Rockford promoted their technical expertise in both domestic and importing supply, which Field emphasizes.
Field is located “across town in Rockford” and will eventually move the new OEM operations “when we make room for them.” Field”s current Rockford facility is full because “business is booming,” Derry said.
Until then the Rockford OEM business will remain in the current facility.
Found in 1976, Field Fastener is a global supplier of fasteners, with facilities in Minnesota, Wisconsin and Illinois. Field is a Derry Enterprises Company.
“We have a strong financial statement and we are strong in human resources,” said Derry, the 1997-98 president of the National Fastener Distributors Association. Derry was a Rockford employee from 1989 to 1992.
Rockford International also has a consumer goods distribution business that markets to such customers as NAPA Auto Parts and Ace Hardware.
Rockford”s International Group is the smaller of two Rockford Products segments and distributes mostly third-party overseas parts to automakers and aftermarket auto parts suppliers. The larger cold formed products division, responsible for 75% of the company’s revenue is a domestic manufacturer of ball studs and other auto parts.
Field Fastener is headquartered at 9883 N. Alpine Rd. (P.O. Box 2529) Machesney Park, IL 61132-2529. Tel: 815 637-9003 Fax (815) 637-7575 Web: fieldfastener.com
Cold Form Division Still Up For Sale
Rockford Products has signaled that it may have new buyers interested in buying its cold form division. Company financial consultant Mike Silverman told the Rockford Register Star that other buyers are interested in purchasing the company'”s largest division, but more negotiation time is needed.
After filing Chapter 11, Rockford Products successfully negotiated a deal to sell its retail fastener and auto parts line to RB Distribution, an affiliate of Dorman Products, for about $3.4 million.
The unsuccessful attempt to sell its cold formed operation was a setback. Rockford Products had negotiated a $21 million credit deal with Bridge Finance Group to keep the company running through October in the expectation that new ownership would take over. Lacking that, the employee-owned fastener manufacturer now seeks a new multi-million dollar finance agreement to keep operating until January.
The uncertainty reportedly prompted one of its largest customers, Federal Mogul, to seek assurances in court that Rockford Products can deliver its orders.
In its first month after filing bankruptcy, Rockford Products reportedly showed a profit of $510,000, despite paying $533,631 to service its loan with Bridge Finance, the Star reports. However, the company reportedly has more than $11 million outstanding with its top 20 unsecured creditors, and a total of 900 creditors are owed undisclosed sums.
Founded in 1929 as Rockford Screw Products, Rockford Products manufactures and distributes ball studs, cold formed fasteners and other specialty products. The company, which has 515 employees, reported 2006 sales of $101 million. Web: rockfordproducts.com � 2007 FastenerNews.com