5/25/2011 2:05:00 PM
HEADLINES
Porteous Fastener Acquires Assets of Heads & Threads
Porteous Fastener Company acquired certain assets of Heads & Threads International.
HTI is now gone as Porteous purchased assets only. The five remaining HTI branches in New Jersey, Atlanta, Chicago, Dallas and Los Angeles will close as Porteous moves inventory to its own branches by the end of June.
“This was the longest, most difficult negotiation of which I’ve ever been a part, but well worth it in the end,” PFC president Barry Porteous said. “I think it is the best possible outcome for the vendors who have not been paid since mid-December.”
Executive vice president Bob Porteous said PFC will now add several thousand new items to its inventory, including a major expansion in socket screws.
“I’m excited about the addition of all the new items, and especially sockets.”
Porteous announced it has hired Brighton Best International purchasing manager George Mraz to oversee the PFC socket expansion. That includes new socket sizes, plated and patched product.
Bob Porteous noted, “We also had the opportunity to hire many of HTI’s top inside sales and warehouse employees.”
PFC’s inventory control department analyzed the 25-million pound HTI inventory. “A lot of really good stuff, but also several million pounds are head to the scrap yard,” PFC vice president / materials management Bruce Darling said.
The HTI assets went up for auction this month. The auction was conducted by Chicago-based Proskauer Rose LLP.
The auction offered for sale, free and clear of valid and enforceable recorded liens, as well as all of the Assignee’s right, title and interest in and to the Assets, including, but not limited to, the inventory, equipment, packaging and supplies, and fixed assets (including but not limited to warehouse racks and equipment),” according to the auction notice.
The transaction excludes all cash, deposits, accounts receivable and computer hardware and software.
The Stalking Horse Offer for HTI was an estimated $11,993,407, based on an inventory report.
Porteous is a Southern California-based master distributor of industrial and construction fasteners. PFC has 17 locations in 12 states plus British Columbia.
Porteous Fastener was founded in 1968 by Bud Porteous and his wife, Anne Weber Porteous.
Bud Porteous moved to California in 1946 and went to work at Russell Bolt & Manufacturing. After Russell Bolt was liquidated two decades later, he used his severance pay to start Porteous Fastener Company. In 1984 PFC acquired International Fastener Company, which had Houston and Atlanta locations.
For the company story, click on Fastener History and scroll down to the headline, “2008 FIN – Employees, Customers & Suppliers Tell the Porteous Story.”
Heads & Threads International went into receivership early this year with $16 million in debt.
Founded in 1953 by Norman Sackheim as Heads & Threads Co. in Chicago, the company was acquired in 1974 by insurance giant Alleghany Corp. In 2004 Alleghany sold Heads & Threads International for $55 million in cash in a management buyout.
The deal included all five distribution centers and six warehouses. In 2004 HTI reported revenues for the third quarter jumped 36.8% to $41.8 million, while nine-month sales gained 44% to $123.22 million.
As of the beginning of 2011, HTI was led by CEO/president Michael Wrenn.
HTI was a master distributor and importer with a product list of 14,000 items. HTI had branches in Atlanta, Cleveland, Houston, Miami, Seattle Dallas, Los Angeles, New Jersey, Tampa and was headquartered in Carol Stream, IL. Web: headsandthreads.com ©2011 GlobalFastenerNews.com
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