Monessen Hearth Systems Co. reports it acquired the assets of the CFM Corp.’s Vermont Castings and Majestic Fireplaces product lines. This includes plants and equipment at Bethel and Huntingdon, VT, as well as receivables, inventory, and certain contracts and intellectual property, among other specific items,
Vermont Castings and Majestic Fireplaces were among the principal assets of CFM Corp., the Ontario company that filed for bankruptcy in April. Like Vermont Castings and Majestic Fireplaces, MHSC manufactures fireplace, stove, and hearth products.
"We are very excited to be adding the Vermont Castings and Majestic lines to our extensive selection of fireplace and hearth products," stated MHSC president and CEO Dave Barrett. "These brands are exceptionally well-respected in the marketplace, and have a loyal following among distributors, dealers, retailers and consumers."
Based in Paris, KY, MHSC is a holding of The Riverside Co., an investment group that reports the value of the CFM purchase is $42.5 million. MHSC was established in 1993 and operates a 280,000-ft2 plant that produces 95,000 fireplaces and 100,000 log sets annually.
MHSC also acquired all shares held in the capital of CFM Mexico (Temcomex S.A. de C.V.)
CFM filed for creditor protection on April 9, with liabilities and third-party debts totaling $329.5 million. It was the second turn in bankruptcy for the organization, which filed previously in 2005 and was revived then by a $60-million cash investment from the Ontario Teachers' Pension Plan.
CFM’s assets included 16 manufacturing plants, including facilities in Orilla, ON, and Huntington, IN, as well as the Vermont operations. Its other brand names include Dutch West and Century Hearth. It has continued to operate during its restructuring.
MHSC states the asset-purchase agreement was accepted by CFM and approved by U.S. courts on June 30, and by Canadian courts on July 3.