An Italian company has agreed to buy power equipment manufacturer Powermate Corp. for $6.6 million.
Pramac Industries entered into a purchase agreement in April, and the U.S. Bankruptcy Court approved the transaction this week. The sale is expected to close this month.
Powermate filed for bankruptcy in March and announced plans to close its Kearney plant, eliminating about 200 jobs.
The Aurora, Ill.-based company said in its bankruptcy filing that it owes between $50 million and $100 million to creditors, most of which are suppliers.
Powermate, which has plants in Kearney and in Springfield, Minn., manufacturers portable generators, air compressors and pressure washers.
The sale to Pramac would not include the Kearney plant, which is owned by the city, but the company could choose to continue operations there.
Pramac is the world’s fifth-largest manufacturer of power generators. Its U.S. headquarters is in Marietta, Ga.
Sun Capital Partners bought Powermate, then called Coleman Powermate, from American Household in August 2004. In 2006, Sun Capital announced it was trying to sell Powermate, but that deal fell through.
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On the Net:
Powermate Corp.: http://www.powermate.com
Pramac Industries: http://tiny.cc/rcfyc
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