Royal plans sale of injection molding business (July 29, 2005)
Canadian PlasticsCanadian Plastics
Royal Group Technologies Ltd. is looking to sell 60% of Royal Alliance, its business unit responsible for producing...
Royal Group Technologies Ltd. is looking to sell 60% of Royal Alliance, its business unit responsible for producing injection molded polypropylene (PP) products, the company announced July 28.
These include housewares, indoor storage products, pet care products and garden furniture.
Royal, headquartered in Woodbridge, Ont., also plans to sell its wholly-owned subsidiaries, Baron Metal Industries and Roadex Transport.
This news follows Royal’s announcements on July 15 that it planned to restructure the company in attempts to improve financial performance and to refinance the company.
"Development of a strategic plan to realize the full potential of core businesses is underway, and will be approved by the Board and communicated to the financial community in early September, which is in advance of the conclusion of the process to solicit bids for the Royal Group," said Larry Blanford, Royal Group’s president and CEO.
The actions taken by Royal are purely to enhance shareholder value, whether the company is sold or remains a public entity, he added.