TORONTO-German compounder Polyplast Muller GmbH plans to acquire Colortech Corp., a color and additives concentrates producer based in Brampton, Ontario, that also has a plant in Morristown, Tenn. Privately held Polyplast has annual sales of about US$30 million, Horst Kroger, the firm's chief financial officer, said in an interview from Straelen, Germany, where it is based and operates its only plant. Colortech, traded on the Toronto and Montreal stock exchanges, had sales of C$31.4 million (US$22.9 million) and a loss of C$336,000 (US$245,000) for the nine months ended Sept. 30.
Colortech President Terry Breckenridge said Polyplast could expand his firm's markets and technology. Colortech's sales are weighted to film markets. Kroger said Polyplast focuses on additives concentrates, mainly for injection molding.
Polyplast plans an all-cash takeover bid for Colortech's 5.1 million shares in February and hopes to conclude a deal within 60 days after the offer, said Wynn Oughtred, a lawyer with Borden & Elliot of Toronto who is acting as Polyplast's counsel.
Colortech Class A shares rose C$0.50 (US$0.365) to close at C$1.60 (US$1.17) on Jan. 23, the day after Colortech announced Polyplast's takeover intentions.