Tue., 6:34am: Former military supplier’s assets sold in auction
SALEM – The assets of Miller-Holzwarth Inc. were sold to Optex System Holdings, Inc. for $750,000 during a bankruptcy auction in the Medina County courthouse Thursday.
The auction included real estate, machinery, inventory, intellectual property and other intangibles. A hearing confirming of the auction will be held Thursday.
Miller-Holzwarth, located at 450 W. Pershing St., was a longtime Salem manufacturer that supplied the U.S. military with armored combat vehicle components including periscopes and ballistic glass for more than 35 years.
It was named a Small Business Administration business of the year in 2007.
It closed suddenly last July costing 80 people their jobs.
The auction was the result of a lawsuit filed by Norcatec LLC, one of Miller-Holzwarth’s creditors that is owed a court judgment of $1.56 million and bidders paid a $75,000 deposit to register.
According to its website, Richardson, Texas-based Optex Systems is a “leading manufacturer of optical sighting systems and assemblies primarily for department of defense applications.” Its products are installed U.S. military land vehicles, such as the Abrams tank and Bradley fighting vehicles, light armored and armored security vehicles, and on the Stryker family of vehicles.
Optex CEO Danny Schoening said, “We are extremely pleased with this acquisition of assets, intellectual property, and related products. Not only were we able to acquire piece parts and tooling at greatly reduced prices for existing Optex products, we also secured designs and product models of parts that previously had been single-sourced only through MHI. We are now able to add new product lines, complementing our existing core competencies, while bringing valuable inventory and tooling which has already passed critical customer testing.”
The remaining assets, including the land, building and other machinery and furnishings were acquired by BidItUp and Maynards Industries. Regarding what would happen to those assets, a BiditUp spokesperson in California referred inquiries to Maynards and a call to that company was not immediately returned on Monday.
According to its website, Maynards, based in Vancouver, holds a global presence in managing asset auctions and asset valuation projects from eight international offices. Founded in 1902, it is the largest automotive auctioneer and liquidator in the world.
Optex also manufactures and delivers numerous periscope configurations, rifle and surveillance sights and night vision optical assemblies. Optex delivers its products both directly to the military services and to prime contractors.
Bidders were required to submit an International Traffic in Arms Regulations (ITAR) non-disclosure and confidentiality agreement with the deposit.