Pitt Penn Changes Hands

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The owner of Pitt Penn Oil Co. agreed last week to sell the Pennsylvania compounder blender to Industrial Enterprises of America Inc., a year-old holding company with operations in automotive specialty products and refrigerant gases. The seller is SpinWell Holding Co., a private investment group in Cleveland that bought Pitt Penn out of bankruptcy three years ago.

The investment group bought [Pitt Penn] with the intent of making it profitable, and that is what happened, Pitt Penn President Damon L. Rodehorst said. Hesaidit was not SpinWells plan to sell Pitt Penn, but Industrial Enterprises found the company, decided that it met its objectives and made an offer that SpinWell accepted.

The transaction was valued at $4 million, according to Industrial Enterprises, which is based in New York. Industrial Enterprises officials said Pitt Penn will double the size of their company andsome of its existing operations will be moved to Pitt Penns facilities, which are now being used at less than capacity.

Pitt Penns operations and facilities will become the cornerstone of Industrial Enterprises of America, Chief Executive Officer John Mazzuto said. We believe that this acquisition and its private label automotive products will create significant operational efficiencies and economies of scale. The addition of Pitt Penns high volume manufacturing operations complements our existing companies.

Pitt Penn, which is located in Creighton, Pa., produces automotive products such as engine oils, transmission fluids, gear oils, antifreeze and fuel additives. It also blow-molds plastic bottles.

Industrial Enterprises is a private firm formed in late 2004 to acquire EMC Packaging Inc., a refrigerant gases supplier that had been publicly traded. Industrial Enterprises later added Todays Way Manufacturing, a producer of specialty automotive products, and Unifide Industries Ltd., which markets and sells them. The company predictedits latestacquisition will yield efficiencies allowing it to doublerevenues and income over the coming year.

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