Private equity firm buys Breen Color Concentrates

By Michael Lauzon
Correspondent

Published: February 14, 2014 1:17 pm ET
Updated: February 14, 2014 1:19 pm ET

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers

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.


Comments

Private equity firm buys Breen Color Concentrates

By Michael Lauzon
Correspondent

Published: February 14, 2014 1:17 pm ET
Updated: February 14, 2014 1:19 pm ET

Post Your Comments


Back to story


More stories

Image

Styrolution will open new production late 2014

July 30, 2014 12:54 pm ET

Germany-based styrenic materials group, Styrolution, has announced it is expanding its facility in Ludwigshafen, Germany.    More

Unipex Group buys Ferguson Chemical Innovation

July 29, 2014 1:57 pm ET

Chemical distributor Unipex Group Inc. announced July 29 that it had purchased Ferguson Chemical Innovation, a Brampton, Ontario-based supplier of...    More

Image

Universal Polymer beefing up capabilities through acquisition

July 29, 2014 12:04 pm ET

Universal Polymer & Rubber Ltd. is growing again and adding to its capabilities, this time via another acquisition and a plant expansion.    More

Image

Reynolds considering sale of Closure Systems International unit

July 29, 2014 10:32 am ET

Packaging giant Reynolds Group Holdings Ltd. has put its closures business under review.    More

Image

Carbon black supplier Orion begins trading on NYSE

July 29, 2014 11:29 am ET

Orion Engineered Carbons S.a.r.l. has priced the initial public offering of 19.5 million common shares at a price to the public of $18 per share.    More

Market Reports

Plastics Recyclers Data Report & Directory

This exclusive MS Excel database contains all the companies from Plastics News' ranking of top North American Recyclers and Brokers by reprocessed volume and also includes a directory with materials processes, services offered and company contact information. Data is based on primary research by PN editorial staff.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Shale Gas Market - Analysis of North American Region

This report highlights the impact of shale-based natural gas on the North American plastics market and features an in-depth analysis of production trends in the United States during 2013 and a forecast for 2014 and beyond.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events