Spartech Corp. plans another expansion through acquisition by buying Hamelin Group Inc., a diversified Montreal processor and compounder. With the ink barely dry on its purchase of Portage Industries Corp., Clayton, Mo.-based Spartech agreed to buy Hamelin for about $55 million to $60 million. Hamelin has annual sales of about $80 million to $85 million in sheet extrusion, color concentrates, thermoforming and injection molding.
Bradley Buechler, Spartech's president and chief executive officer, said Hamelin will give Spartech operations in Canada and the northeast United States, a strategy it wanted to achieve by 1997. The deal also will launch it into injection molded thin-wall containers, housewares and industrial wheels, and expand its thin-wall thermoforming business - a market it entered with the Portage purchase.
Spartech plans to keep Hamelin's businesses and expand them, but Hamelin's sheet and concentrate operations were what originally attracted Spartech, Buechler said in a telephone interview.
In a June 10 news release, Spartech estimated that Hamelin's operations will boost its annual sales to $475 million and production capacity to 550 million pounds.
Hamelin majority owner Robert Hamelin said Spartech's offer was ``unsolicited and unexpected,'' and that his firm was ``not on the block.'' He decided to sell the 27-year-old company because the offer is very attractive, he said.
Robert Hamelin owns 70 percent of the company and the rest is held by a pension fund, he said. He has not decided on his plans after the sale, which the companies expect to complete by Aug. 31.
Hamelin's GM Plastics division in Granby, Quebec, and Cornwall, Ontario, will boost Spartech's thin-sheet product offerings, Buechler said. The Korlin Concentrates division in Strat-ford, Ontario, will add high-volume compounding business.
Hamelin's Genpak Canada division makes thin-wall containers in Cookshire, Quebec, and Toronto, for dairy and related industries. Hamelin Enterprises in Montreal injection molds proprietary housewares for mass merchandisers. Hamelin Industries Inc. of Warsaw, Ind., injection molds wheels for a range of industries.
GM Plastics had sheet sales of $21.7 million for the year ended April 30, 1995, Plastics News reported in its September ranking of North American film and sheet manufacturers. Robert Hamelin did not provide sales information on the other divisions.
Buechler said Spartech will invest in the Hamelin operations, some of which are ISO 9000 certified, to broaden product lines. He said his company also plans to invest an undetermined amount in sheet extruder and light-gauge thermoformer Portage Industries of Portage, Wis. It concluded the Portage deal May 9.
Spartech said terms of the Hamelin purchase will be released when the deal is done. It will finance it with $30 million in new loans and a common stock offering.