(This article appears as part of the Knife News column in the April 2025 issue. We are posting it here both because of its timely nature, and because we have been covering the ongoing Crucible bankruptcy news both online and in print)
Second Bidder complicates Crucible Industries Bankruptcy Sale
Over the course of the previous two Knife News columns, we have been following the unfolding saga of the Crucible Industries bankruptcy, as well as the sale of assets and potential closure of the 125 year old Geddes, New York based company. In our last issue, we reported that the potential buyer, European steelmaker Erasteel, was in talks to purchase the company, but were only interested in the Intellectual Property, trademarks, and patents. Erasteel had no plans to operate the mill themselves, and Crucible’s approximately 170 employees would be out of work. They may however, been given a reprieve.
The title of last month’s piece, “Baring Miracle acquisition bid, Crucible Industries to shut down by end of February” held true however, at least partially, because Lauter Metal Technologies LLC, a newly formed subsidiary of Penn Yan, New York specialty fastener maker OptiTorque Technologies LLC, is looking to purchase Crucible’s buildings and some physical assets.
From Syracuse.com:
A second, last-minute bidder for the Crucible steel plant property in Geddes intends to continue the mill’s operations and preserve many of its jobs, according to an attorney for Crucible.
U.S. Bankruptcy Court Judge Wendy Kinsella on Tuesday (Feb 25th) approved the sale of Crucible’s main business and most of the assets and intellectual property to French steelmaker Erasteel Inc. for $17.3 million. After adjustments and credits at closing, the deal is expected to be worth $11 million to $12 million.
But Erasteel is not buying all of Crucible’s equipment. It’s leaving behind the buildings and all of the land……Charles Sullivan, an attorney for Crucible, said Lauter bid $1.4 million in cash for the remaining assets that are part of the bankruptcy.
Additionally, Lauter wants to purchase Crucible’s real estate, which is not part of the bankruptcy case. That would include the purchase of nearly 70 acres near the village of Solvay in a separate transaction.
“I am very pleased to announce that we have achieved a result which we anticipate will generate a meaningful recovery for creditors and will preserve a significant number of jobs at the Crucible plant in Solvay,” Sullivan said during a hearing before Kinsella at the federal courthouse in Syracuse.
At the time of this writing (Feb. 27th), the final disposition of assets is unclear, as are the plans the two companies have going forward. It is important to note, that with the exception of CPM S110V, which is under patent, most individual steel formations can be made by several producers. Niagara Specialty Metals, the company that processes raw steel into the form that is purchased by knife companies, distributors, and individual makers, has repeatedly assured customers that they will continue to provide product with minimal disruption. However now that the sale has been completed, unless Erasteel choses to license the trademarked names, like CPM MagnaCut, the steel in question would need to be marketed under a different name.
As this story continues to develop, you can follow the latest on the KnifeMagazine.com daily newsfeed.
Related:
Crucible Industries announces potential closure
KnifeSteelNerds: Crucible Steel is Bankrupt! What is Next for MagnaCut?
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