Steel Fabrication & Machining Supplier Opens Facility in McAllen, Texas MSA

McAllen Economic Development Corporation

The Butler Weldments Corporation, a nationwide & international supplier of custom steel fabrications and machining is pleased to announce the signing of a lease to open a new facility in the McAllen MSA area.

The Butler Weldments Corporation is a versatile steel fabrication and machining business with a 30 year tradition of quality and integrity. They manufacture fabrications in the U.S. and Mexico for a variety of industries including power generation, national defense, construction, petrochemical, mining and various original equipment manufacturers (OEM’s). This new facility, located in the Pharr industrial park, will be its third location and will be a combination warehouse, office space and manufacturing facility dedicated initially to servicing their plant in Rio Bravo, Mexico – across the border from McAllen MSA. The planned processes to be offered at this location include blasting, painting, saw cutting, plasma cutting, beveling and small machining. These services will be provided to the sister plant in Mexico, the corporate headquarters in Cameron, Texas and other potential clients.

“We chose this facility for its strategic location and proximity to the Mexico facility,” said Steven Dobos, President of The Butler Weldments Corporation. “This facility will allow us to take the products we currently manufacture to the next level and provide our existing and potential customers with assembly-ready products and just-in-time delivery.”

Over the past three decades, The Butler Weldments Corporation has expanded and adapted to best serve the changing needs of the manufacturing industry. Their facilities, capable of producing a wide range of products, are centrally located in the United States as well as globally competitive Mexico.

Butler Weldments plans to hire 10 people within the first year of operations and will occupy 15,000 square feet, expecting to expand the facility as more business is added or transferred to this location. McAllen EDC has been working closely with The Butler Weldments Corporation for a number of years in both their existing U.S. and Mexico plants, supporting them in site selection for this new building, lease negotiations, and connecting them to potential customers. Their new Pharr location will be fully operational by the 4th quarter of 2011.

For more information about Butler Weldments Corporation and their products and services, please contact Steven Dobos (254) 697-6416. www.butler-weldments.com

WHAT DOES THE FUTURE HOLD FOR ARBY’S, WENDY’S?

JUN 15, 2011 12:31 PM, BY MARK BRANDAU, NATION'S RESTAURANT NEWS ASSOCIATE EDITOR

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The $430 million sale of Arby’s Restaurant Group Inc. to Roark Capital could be qualified as addition by subtraction for both the 3,600-unit Arby’s and its former sister chain, the 6,600-unit Wendy’s.

Restaurant securities analysts noted that the terms of the brands’ separation — with Arby’s leaving parent company Wendy’s/Arby’s Group Inc., and Wendy’s remaining — represented a fair value for Arby’s and will allow both chains to go their own ways with fresh infusions of cash.

Atlanta-based Wendy’s/Arby’s Group now can focus solely on Wendy’s growth initiatives, a goal that company executives said motivated the January announcement that Wendy’s/Arby’s Group would seek strategic alternatives for Arby’s. Areas of focus for Wendy’s will include its test of a new breakfast platform, currently in six markets, with a goal of being in 1,000 stores by year-end; expanding internationally to as many as 8,000 locations; and adding as many as 1,000 domestic stores over the next few years, while remodeling many units along the way.

As part of the deal announced Monday, Roark Capital will pay Wendy’s/Arby’s Group $130 million in cash and assume $190 million in Arby’s-related debt. Wendy’s/Arby’s Group also will receive an $80 million tax benefit. The company also retains an 18.5-percent stake in Arby’s, valued at $30 million, letting it still reap any of the upside should Roark successfully turn around the sandwich chain’s business.

As for Arby’s, Roark has announced that it would spend $180 million at the start of the deal, with $130 million going to Wendy’s/Arby’s Group to pay the cash portion of the purchase price and the remaining $50 million earmarked for liquidity and growth capital for the sandwich chain. Roark officials said the private-equity firm would invest an additional $50 million through 2013 to fund more growth opportunities.

Wendy’s gets a cleaner balance sheet

As Wendy’s attempts to grow a significant presence internationally and realize its remaining potential in the United States, the brand should have a healthier balance sheet to do so. The sale’s $130 million cash proceeds and the assumption of $190 million in debt by Roark Capital represents a $320 million swing in Wendy’s net debt-to-earnings ratio.

Though the company would have to forgo Arby’s trailing-12-month earnings before interest, taxes, depreciation and amortization, or EBITDA, of $53 million, Wendy’s/Arby’s Group’s debt would fall to 2.2 times EBITDA. The presale ratio is 2.7 debt-to-EBITDA. Following the close of the sale, Wendy’s/Arby’s Group would have $630 million on hand.

Continue reading at NRN.com.