Spartech Corp. of Clayton, Mo., is continuing its expansion into color concentrates by acquiring Prismaplast Canada Ltd. of Montreal in a deal worth $5 million.
Prismaplast, commonly known as Plasticolour, posted sales of $10 million last year in color concentrates and specialty compounds. The firm employs 50 and operates six extrusion lines in a 30,000-square-foot facility.
Spartech will invest $300,000-$500,000 in capital improvements at Prismaplast in the next 12-18 months, according to Bradley Buechler, Spartech president and chief executive officer.
The improvements will include upgrades of existing equipment or purchases of new equipment. Buechler said Spartech aims to boost Prismaplast's 10 million-pound annual capacity up to 12 million to 15 million pounds through the investment.
In an April 27 telephone interview, Buechler said Prismaplast will be ``an excellent addition'' to Spartech and will complement Spartech's color concentrates operation in Stratford, Ontario.
``We run a fair amount of small-size orders in Stratford, but there's a possibility we could keep the larger orders in Stratford and run the smaller ones'' in Montreal, Buechler said.
Prismaplast owner William Rooz, who founded the firm with a partner in 1982 and became sole owner in 1989, said the move ``is a positive thing, no doubt about it.''
``Our focus is quick response — we're basically service-oriented,'' Rooz said in an April 30 telephone interview. ``We hope to complement each other's businesses and get some good synergies going.''
Rooz, who was not looking for a buyer when contacted by Spartech, will remain with the company in a marketing capacity.
Half of Prismaplast's concentrates are white; the rest include an assortment of colors. Polyethylene-based products make up the largest single portion of its business, which also includes concentrates with flame retardants and ultraviolet light stabilizers.
``[Prismaplast] serves the PE film market, but they're also involved in some toy and houseware applications that we're not much involved in right now,'' Buechler said.
