Accel Corp. is still on the move, making its first acquisition only two months after opening its second color compounding facility.
Naperville, Ill.-based Accel bought Phoenix Color and Compounding Inc. of Sandusky, Ohio, in late December. Phoenix, which makes plastics color concentrates and additive systems, posted sales of $2 million in 2000. The transaction price was not released.
Accel will close the Sandusky site and move Phoenix's equipment and all 19 employees to the Avon, Ohio, plant that Accel opened in October.
When the move is complete, the Avon plant will operate nine lines with about 6 million pounds of annual capacity, as well as a development lab.
The Phoenix deal will provide Accel with an experienced team to expand its Ohio presence, valuable technology in carrier systems for blowing agents and ultraviolet-light stabilizers, and a solid customer base to jump-start the Avon facility, Accel Executive Vice President Michael Clabough said in a news release.
Phoenix President Dennis Meade, who founded the company in 1991, will remain with Accel as part-owner and business manager.
Accel, founded in 1998 by compounding industry veteran Dwight Morgan, also operates seven lines in Naperville, where its annual capacity is 10 million pounds.
The firm makes color concentrates based on polyethylene, polypropylene, polystyrene and a variety of other resins. Accel posted sales of $6 million in 2000. The company expects 2001 sales to top $11 million.
Accel also recently increased its sales staff from seven to nine and plans to add at least one more manufactuirng site in 2001, either through acquisition or new construction.
"Our business model calls for multiple sites located close to our customers," Morgan said in a telephone interview.