Indiana Limestone Co. Reopens Quarries, Plant
OOLITIC, Ind. – Indiana Limestone Co., one of the legendary names in the U.S. stone industry, is up and running again after closing its doors – for a very short time – earlier this month.
Wynnchurch Capital, a Rosemont, Ind.-based middle-market private-equity firm, pulled Indiana Limestone out of its second bankruptcy proceeding in five years with a $26 million offer made in mid-April. Wynnchurch announced their ownership on May 13 and appointed Tom Quigley, a former Owens Corning vice president, as CEO.
“We believe the company’s superior products and established customer base leave Indiana Limestone well positioned for future growth as construction markets recover,” said Wynnchurch Managing Partner John Hatherly.
Victor Oolitic Stone Co., Indiana Limestone’s parent company, filed for Chapter 11 reorganization on Feb. 17 at the U.S. Bankruptcy Court in Delaware. An auction of the company, slated for last month, was called off when no other qualifying bids rivaled the $26 million from Indiana Commercial Finance LLC (ICF), a Wynnchurch subsidiary.
Wynnchurch noted interest in acquiring Indiana Limestone before the bankruptcy, and funded a $3.5 million loan through ICF to finance bankruptcy proceedings.
While the purchase stopped the bankruptcy, the initial filing required Indiana Limestone to wind-down operations, lay off its 166 employees, and close. The company technically went through a full shut-down on May 2, a Friday. At the beginning of the next work week – Monday, May 5 – the company reopened and hired back employees.
The company is currently operating two quarries and a processing plant in Indiana.
Indiana Limestone showed approximately $60 million in debts when it filed for Chapter 11 reorganization, including a $53 million credit facility for which ICF recently bought the secured-loan rights.
Ironically, that same amount was owed by the previous owners of Victor Oolitic Stone – the Audax Group of Boston – when it declared Chapter 11 bankruptcy in April 2009. Audax bought the company in 2005 during the peak of the boom in construction and mortgage financing, only to see the market crash a few years later.
Quigley, the new CEO, comes to Indiana Limestone from the North America residential-insulation business of Owens Corning. Since 2008, he served as general manager and vice president, overseeing nine manufacturing plants and distribution/retail. From 1999-2008, he also worked as a vice president in marketing for Carrier Corp., Ingersoll Rand and Master Lock.
“We are pleased with the support Wynnchurch provided as our DIP lender throughout the bankruptcy process,” Quigley said. “Indiana Limestone will be able to leverage the expertise, resources and capital that Wynnchurch provides to deliver our products to the marketplace and drive growth.”
During its 120+ years of operation, Indiana Limestone and its predecessors produced limestone from some of the most-iconic buildings in the United States, including the Empire State Building in New York, the Pentagon in Arlington, Va., and the Washington National Cathedral.
Information for the article came from Law360 and the Indiana Business Journal.
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