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
Companies & Associations

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

Dow Chemical to merge chlorine operations with Olin

March 27, 2015 12:43 pm ET

Dow Chemical Co. is combining a large part of its chlorine value chain with specialty chemicals and ammunition maker Olin Corp. to create a global...    More

Image

Eastman Chemical expanding Tritan co-polyester capacity

March 27, 2015 10:00 am ET

Eastman Chemical Co.'s Tritan-brand co-polyester business continues to grow, with 35 million pounds of capacity added late last year and a second...    More

Image

PolyOne's Patterson focused on keeping the momentum going

March 27, 2015 9:30 am ET

New PolyOne CEO Robert Patterson sees a lot of good things when he looks at his company, which ranks as North America's largest compounder and...    More

Image

Improvements to Radici's nylon line takes it into more applications

March 27, 2015 9:00 am ET

Radici Group, the Italian-headquartered materials firm, outlined the benefits of its Radilon and Radistrong nylon products at NPE 2015.    More

Sun Plastech, Plastics Color Corp. note major milestones at NPE

March 27, 2015 9:00 am ET

Sun Plastech Inc. and Plastics Color Corp. — two well-known materials firms — are marking anniversaries at NPE 2015.    More

Market Reports

Flexible Packaging Trends in North America

North America represents about 30 percent of the global consumption of flexible packaging. Annual growth in this region is forecast at 4 percent during the next 5 years.

For more insight on growth opportunities, drivers of growth and the outlook for 2015, download this report.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events