Leetsdale's Hussey Copper auctioned for $107.7 million
Bankrupt Hussey Copper Ltd. of Leetsdale was sold to a unit of a New York private equity firm for $107.75 million during a bankruptcy court auction, according to court documents filed on Friday.
Libertas Copper LLC, a unit of Patriarch Partners, outbid several other bidders at a U.S. Bankruptcy Court auction in Wilmington, Del. Revere Copper Products, KPS Capital Partners LP and Nehoshet Enterprises of Coraopolis were among the other bidders. KHC Acquisition LLC of Red Bank, N.J., submitted a starting bid of $88.7 million.
Libertas Copper will be entering the copper production business with plants in Leetsdale and Eminence, Ky. Hussey Copper makes a variety of copper products and value-added copper products, including sheet, tape, copper-nickel alloy sheet and plate and strip. It operates the world's largest rolled copper bar plant in Eminence.
A spokesman for Patriarch Partners in New York could not be reached for comment. Patriarch Partners is owned by Lynn Tilton, who dubs herself the "turnaround queen" on its website. Patriarch has a portfolio of 70 companies, including some manufacturers.
Hussey Copper and five of its subsidiaries filed for bankruptcy Sept. 27, saying its debts and assets topped $100 million. The company was founded in Pittsburgh in 1848.
"We're relieved that we got an owner," said John Cunnard, president of United Steelworkers Local 1211, which represents about 380 steelworkers at the Leetsdale plant.
Cunnard hopes Libertas Copper will keep the plant operating, but he has not yet met Tilton to talk with her about her company's plans.
"This is a plant that makes money. Business is good, but not as good as it could be," said Cunnard, who has worked at the plant for 12 years. He attributes the drop in business to the uncertainty of bankruptcy.
Libertas Copper has agreed to honor the existing USW contract, which expires in November 2012. Cunnard said he anticipates that the sale will close in about 30 days.
Libertas Copper was able to overcome the objections of some of the creditors, including the USW, which had opposed bidders that would have altered the pension plan of its union employees at the Kentucky plant. Libertas Copper agreed not to change the defined benefit pension plan for workers hired before January 2011. Workers hired after that date will have a defined contribution plan, a 401(k).
Both Hussey Copper CEO Roy D. Allen and James Clayton, human relations director, could not be reached for comment.
Show commenting policy
TribLive commenting policy
You are solely responsible for your comments and by using TribLive.com you agree to our Terms of Service.
We moderate comments. Our goal is to provide substantive commentary for a general readership. By screening submissions, we provide a space where readers can share intelligent and informed commentary that enhances the quality of our news and information.
While most comments will be posted if they are on-topic and not abusive, moderating decisions are subjective. We will make them as carefully and consistently as we can. Because of the volume of reader comments, we cannot review individual moderation decisions with readers.
We value thoughtful comments representing a range of views that make their point quickly and politely. We make an effort to protect discussions from repeated comments either by the same reader or different readers.
We follow the same standards for taste as the daily newspaper. A few things we won't tolerate: personal attacks, obscenity, vulgarity, profanity (including expletives and letters followed by dashes), commercial promotion, impersonations, incoherence, proselytizing and SHOUTING. Don't include URLs to Web sites.
We do not edit comments. They are either approved or deleted. We reserve the right to edit a comment that is quoted or excerpted in an article. In this case, we may fix spelling and punctuation.
We welcome strong opinions and criticism of our work, but we don't want comments to become bogged down with discussions of our policies and we will moderate accordingly.
We appreciate it when readers and people quoted in articles or blog posts point out errors of fact or emphasis and will investigate all assertions. But these suggestions should be sent via e-mail. To avoid distracting other readers, we won't publish comments that suggest a correction. Instead, corrections will be made in a blog post or in an article.
- Pirates say goodbye to veteran leaders Burnett, Ramirez
- State woos Kennametal with $1M in incentives to stay in Pa.
- Steelers notebook: Starting DEs not leaving the field
- Gorman: WPIAL must answer with power move
- NFL notebook: Cardinals to stay in W.Va. ahead of Steelers game
- Pitt, WR Boyd look to break out against Virginia
- Opposing TEs Miller, Gates took differing paths to greatness
- Cole working to become Penguins’ next Martin on defense
- Yatesboro teen died from artery anomaly
- South Fayette extends winning streak in dominating fashion
- Feds aim to bring Chinese military leaders to Pittsburgh for trial