Molding machinery manufacturer - Husky Injection Molding Systems Ltd., has put itself up for sale. Husky has initiated a review, which will include the possibility of a sale of part or all of the company's shares or a strategic combination with another business. This follows a decision by founder and major shareholder Robert Schad to consider selling his holdings. Schad owns 44% of the company. AIM Funds is the second-largest stockholder, with 13%. Citigroup Global Markets has been hired as the financial adviser, but cautioned that it's not certain the company will be sold.
Husky has four plants worldwide that make equipment used in the plastic industry: one each in Luxembourg, China, Milton and Ontario. Husky began making systems to produce forms for polyethylene terephthalate in the 1970s and now claims 70% of the global market for soda-bottle machinery. It has diversified into automotive, packaging and telecommunications applications.
Over the past decade, Husky has made substantial investments to develop a leading technology platform, expand markets and distribution network, improve operations and build a strong management team. Though this has resulted in Husky's competitive position becoming stronger, this position is not reflected in the company's current market valuation.
The company had a net loss of US$7.7 million in its seasonally weak first quarter, which ended Oct. 31, compared with a year ago loss of US$9.3 million, as sales increased to US$191.5 million from US$175.9 million.
13-Mar-07 
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