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Topics Materials Mergers & Acquisitions Materials Suppliers
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Breen Color Concentrates Inc. expects to expand under new ownership.
“We are looking to grow our capabilities through acquisition and/or by expansion here in New Jersey,” said Breen President Howard DeMonte in a telephone interview from Breen’s Lambertville, N.J., head office.
Capital Partners Private Equity Income Fund II LP completed an investment in Breen on Feb. 6, Capital Partners announced. It did not disclose terms of the deal.
DeMonte said Capital Partners shares Breen’s culture and should help it grow internally and through strategic purchases.
Breen has a diverse customer base but is biggest in wire and cable markets, where it has a leading U.S. position, according to DeMonte. It bolstered that business in 2009 when it bought formulations and customer lists for PVC colorants from Teknor Apex Co.
Breen also supplies colorant and additive concentrates to other extrusion markets and to blow molders, injection molders and compounders. Its primary materials are PVC and cross-linked polyethylene.
Breen employs about 85 and runs five concentrate production lines focusing on custom accounts. It last expanded in 2010 with the addition of a compounding line from Technical Process and Engineering Inc. to help in rapid turnover for short production runs. DeMonte predicts Breen’s sales will reach about $35 million in 2014.
Capital Partners said in a news release that Breen’s management will continue to lead the company and invest in it, as is usual for Capital Partners’ investments. A moderate amount of debt was used to finance Capital Partners’ stake, which will contribute to a strong balance sheet. The private equity firm will help Breen identify takeover targets and expand its geographic reach.
Capital Partners does not list any companies in its portfolio similar to Breen but it does have a subsidiary with some involvement with plastics. Derby Fabricating Services of Louisville, Ky., supplies plastic foam shapes and other materials for cushioning and protection in the automotive and appliance sectors.
Spell Capital LLC of Minneapolis bought the majority of Breen eight years ago and decided to sell it as an investment. “It’s a great company,” said President Bill Spell.
With the sale to Capital Partners, Spell Capital no longer owns a stake in Breen.