A.M. Castle (CAS -5.8%) has wrapped the sale of its Total Plastics unit for about $55M.
The company sold the subsidiary to Texas-based Prophet Equity, "yet another significant step in our commitment to delever our balance sheet and improve the capital structure and profitability of our business,” says CEO Steven Scheinkman.
Castle will use the proceeds to pay down debt. In the deal, $1.5M of the price is put into escrow pending a working-capital adjustment to be determined within 60 days.
In its last report, the company had total debt of $322.7M, a debt/equity ratio of 793, and just under $12M in cash.