HMF Innovations acquires Formrite Cos.

Some operations to relocate to Two Rivers

By: Charlie Mathews, Herald Times Reporter

MANITOWOC — HMF Innovations Inc. on Monday announced the acquisition of Formrite Cos. of Two Rivers, a leading provider of formed steel tubing for hydraulic and structural applications.

Formrite's markets include the construction, mining, agricultural, furniture and lawn-care equipment markets. With the acquisition of Formrite, HMF Innovations, along with its sister company, Heavy Metal Fabricators, will be able to provide their shared markets with an expanded range of steel fabrication, assembly and automation services,
according to a news release.

"Our shared customer base is always looking for suppliers that can provide an increasing range of products and services including complete parts and assemblies direct to an assembly line," said David Wage, president and owner of HMF Innovations and Heavy Metal Fabricators. "Together, Formrite, Heavy Metal Fabricators and HMF Innovations can now provide our customers with complete machined fabrications from six pounds to 60 tons along with steel tube assemblies and complex sub-assemblies, all manufactured using the latest automation technologies."

In addition to his ownership of HMF Innovations and Heavy Metal Fabricators, Wage is Formrite's president and chairman of the board. Under the purchase agreement, Wage will acquire a significant controlling interest of Formrite's outstanding stock.

As part of the acquisition, HMF Innovations will move its engineering and manufacturing operations to Two Rivers. Financing for this relocation will be assisted by a $350,000 working capital loan to HMF from Two Rivers' Revolving Loan Fund, approved by the city's Business and Industrial Development Committee on Feb. 2, according to the news release.

Wage expressed optimism that Formrite will continue to see a recovery in its business as the national economy rebounds, allowing the company to recall some or all of the 50-plus employees on layoff. HMF also anticipates growth in its workforce as manufacturers begin to invest in automation and robotics, the news release states.

The Economic Development Corp. of Manitowoc County worked to seek new investment in Formrite.

"The EDC Private Investment Committee did an excellent job in recruiting potential new investors for this project," said Ken Stubbe, director of the EDC. "But without the help of Dave Wage, Formrite employees, the city of Two Rivers and Bank First National, this company could have been gone."

Formrite received a $250,000 working capital loan from the Two Rivers Revolving Loan fund in July 2009. That loan will be repaid prior to disbursement of the $350,000 loan to HMF Innovations, according to Dan Pawlitzke, economic development supervisor for Two Rivers. HMF Innovations expects to complete its move to Two Rivers by early summer.

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