Sencorp cited the skyrocketing price of wire rods over the last year for its plunge into bankruptcy.
The Cincinnati-based manufacturer, which manufactures nails, staples, screws and fasteners, agreed as part of Chapter 11 bankruptcy proceedings to sell its assets to equity firm Wynnchurch Capital Ltd.
Sencorp filed for bankruptcy on May 8. Wynnchurch, which provides equity to middle-market companies, will pay $43 million in cash for Sencorp’s assets and assume certain liabilities.
In the filing, Sencorp blamed the deterioration of its business to the rapid rise in wire rod pricing last year, along with the decline in commercial and residential construction and the recession. It cut its work force to 379, reduced salaries, consolidated manufacturing operations, and closed half of its distribution centers.
Sencorp listed 11 metal suppliers among its top 30 unsecured creditors.