Monomoy Capital Partners has agreed to acquire the molded plastic products business of Atlantis Plastics, which filed for Chapter 11 bankruptcy protection on Sunday.
Atlantis has also agreed a sale of its plastic films business to flexible packaging company AEP Industries. Both sales are expected to close in October.
Financial details were not disclosed.
“The company’s management and board of directors… unanimously determined that sales of our plastic films and molded plastic products businesses through the Chapter 11 process would provide the best result for our creditors, suppliers, employees and customers,” Atlantis chief executive Bud Philbrook said in a statement.
Monomoy’s founding partners left KPS Special Situations Fund in January 2005 to concentrate on the smaller end of the middle market. The firm seeks to invest between $5 million (€3.4 million) and $30 million in distressed companies with revenues of less than $200 million, both in North America and in Europe.
The firm targets sectors including manufacturing, forest products, service, distribution, capital equipment, transportation, textile and retail.
New York-based Monomoy closed its debut fund on $280 million in February 2007. Its initial target was $200 million target and the firm had to turn down almost $80 million in limited partner demand, according to sources close to the firm.