Springs Fabrication Inc., a Colorado Springs-based specialty metal manufacturing firm, has acquired the assets and operations of IP Systems Inc., a financially troubled Broomfield-based manufacturer of specialized containment systems for the nuclear and commercial industries.
IP Systems had defaulted on a $1.23 million loan made last year by Wells Fargo Bank. IP Systems' Malaysian parent company, Genetec Technology Berhad, agreed in July to sell its manufacturing equipment, product designs, patents and other assets to Springs Fabrication for $225,000, according to documents Genetec filed with Bursa Malaysia, the Asian nation's stock market.
Springs Fabrication completed the purchase Friday.
"This acquisition is a pretty good fit for us. We have common customers but we do different things for them. We have complimentary capabilities, so hopefully the result will be greater than the sum of the parts," Springs Fabrication President and CEO Tom Neppl said Thursday.
Springs Fabrication also hired IP's 19 employees, who were instrumental in bringing about the deal.
"We were presented the opportunity. The employees of the company approached us," he said. "We knew them because we have collaborated with them on projects in the past."
Genetec owned 60 percent of IP Systems, which started in 2004 and makes equipment for the nuclear, pharmaceutical and biohazard industries. The products are metal enclosures that workers put their hands through to work with hazardous compounds, highly reactive or explosive substances or radioactive materials.
Neppl said IP Systems was hurt by government budget cuts that caused projects to be delayed or canceled.
Genetec announced plans in May to sell IP, resulting in a $7.56 million in writeoffs for goodwill, bad debts, legal fees and investments in the Broomfield company, according to documents filed Bursa Malaysia.
Springs Fabrication employs more than 200 employees, including 155 in Colorado Springs, to make engineered metal products for the energy, mining and technology industries. The company, started in 1986, is the city's largest and most diversified custom manufacturer with operations now in Colorado Springs, Broomfield and Loveland.
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