MISSISSAUGA, ONTARIO -- Blackhawk Automotive Plastics Inc. has sold its year-and-a-half old injection molding factory in Mississauga to its main customer, Johnson Controls Inc. - and Blackhawk officials are recapitalizing their Salem, Ohio-based company.
The sale was announced May 23. Terms were not disclosed. The company said the Canadian subsidiary, created in the fall of 2003, operated separately from Blackhawk's U.S. Business.
"Selling the Canadian subsidiary allows us to focus on continuing to grow our U.S.-based business," said Clifford Croley, Blackhawk's chief executive officer.
The 288,400-square-foot, greenfield plant in Mississauga was stocked with new Mitsubishi injection molding machines. It served JCI, General Motors Corp. and DaimlerChrysler Corp.
The recapitalization will fund future growth, officials said in a news release. It will include new equity plus new financing from the firm's existing lenders.
Blackhawk said it will use that money, together with proceeds from the Canadian plant sale, to increase its U.S. business through internal expansion and acquisition. In the next few months, Blackhawk will begin production work on several major programs for vehicle launches by DaimlerChrysler, GM and Nissan Motor Co. Ltd.
Croley said that, with the sale and new capital, "Blackhawk is in a strong position, especially compared with many other automotive suppliers."
Blackhawk employs about 1,700 people and runs 135 injection presses. Annual sales are about $240 million.
