WASHINGTON, PA. — Washington Penn Plastics Co. Inc. intends to buy Uniform Color Co. of Holland, Mich. The acquisition is expected to close in January. No terms of the agreement were released.
Uniform Color is a 16-year-old company that makes color concentrates for polyolefin, polystyrene, nylon and ABS. It has sales of about $30 million a year, according to Robert DenHerder, its president.
Its primary market is the automotive industry, but it also supplies concentrates to the furniture, electronic and appliance industries, DenHerder said in a telephone interview Dec. 4 from his office in Holland.
Washington Penn Plastics is a custom compounder that specializes in polyolefins. It provides thermoplastics to the automotive, appliance, housewares, and lawn and garden markets.
Paul Cusolito, vice president for sales and marketing, said he expects the purchase, announced Oct. 29, to strengthen his company's position in the automotive industry.
``Our products primarily are filled polyolefins, and that is where we will stay. We have a lot of product approvals from the automotive companies," according to Cusolito.
``This acquisition brings automotive approvals for color concentrates, which we do not have. It adds to our portfolio,'' Cusolito said in a Dec. 3 telephone interview.
As with companies Washington Penn acquired previously, Uniform Color will operate as an affiliated company, Cusolito said. DenHerder will remain president of the company.
The combination of the companies will provide Uniform Color the national marketing capability and financial resources of the $120 million Washington Penn, and will allow both companies to increase sales and capabilities, Rob Andy, executive vice president of Washington Penn Plastics, said in a prepared statement.
Washington Penn Plastics was founded in 1955. It has manufacturing facilities in Washington and Eighty Four, Pa.; and Summerville, S.C.
It is affiliated with Epsilon Products Co., a polypropylene producer, and with Sirius Chemicals Inc., a bulk chemical trading company, both of Marcus Hook, Pa.