Spartech Corp. has boosted its molded and profile products segment with a $6.7 million acquisition of Anjac-Doron Plastics Inc. of El Monte, Calif.
Clayton, Mo.-based Spartech already operates profile extrusion plants in McPherson, Kan., and Greensboro, Ga.
``This acquisition will significantly increase our profile extrusion capacity, broaden our product and service capabilities to the growing profile market and expand our profile extrusion geographic coverage,'' said Bradley Buechler, president and chief executive officer.
Anjac-Doron processes PVC, polyethylene and styrenics for the packaging, agriculture and general consumer industries. Buechler declined to reveal the number of extrusion lines at the El Monte plant.
He said the 70 employees will be retained.
The closing of the deal is scheduled to coincide with Spartech's year-end, Oct. 31. The purchase will be financed through the company's line of bank credit.
Anjac-Doron has annual sales of about $9 million. Buechler expects the company to be accretive to earnings per share immediately.
Spartech operates three divisions. Spartech Plastics, the sheet manufacturing division, makes up 62 percent of the company's sales. Spartech Polycom, the compounding and color segment, has 30 percent and the remaining 8 percent falls within Spartech's molded and profile products group.
Spartech operates 36 facilities, has annual capacity of more than 1 billion pounds and sales of about $700 million. Spartech Plastics reported sheet and film sales of $432.2 million for the year ended Nov. 1, placing 12th in Plastics News' ranking of North American film and sheet manufacturers.