Color concentrates maker Penn Color Inc. of Doylestown, Pa., has added to its plastics business by acquiring Infinity Color, a Ringgold, Ga., maker of color concentrates for the fiber industry.
Penn Color bought Infinity for an undisclosed price in December, according to Penn Color marketing director Tom Farrell.
The deal gives Penn Color access to the fiber market and dispersion technology, while Infinity gains the financial backing it needed to handle growth, Farrell said by phone.
The Infinity site is Penn Color's third plastics facility, joining plants in Hatfield, Pa., and Elmwood Park, N.J. The 39-year-old firm also produces liquid dispersions in Hatfield; Richmond, Va,; and Venray, the Netherlands. Penn Color employs more than 600 and posted sales of more than $140 million in 2002, with more than half of those sales coming from plastics markets.
Infinity employs 12 and posted sales of about $2 million last year. The firm was founded in 1999 by several color concentrate veterans and outside investors.
In the near term, Penn Color will install a new twin-screw extruder and hire an additional color-matching employee in Ringgold, Farrell said. A second new line could be installed later this year. The site already operates a pair of twin-screw lines.
Most of Infinity's concentrates are based on nylon, polypropylene and PET. Penn Color expects to add polycarbonate and polyethylene, but has no plans to begin cross-production of Infinity products at Penn Color sites or vice versa, Farrell said. ``We've found that the sites that specialize tend to do the best.''
Penn Color was launched in 1964 as a liquid dispersions maker by Edgar Putman and a pair of business partners. Its first plastics work was in PVC concentrates before it added polyolefins and engineering resin-based products in the mid-1980s.
Farrell said the firm began a ``big push'' into plastics in the late 1990s, resulting in the doubling of the space devoted to plastics in Hatfield. Plastics operations now cover a 200,000-square-foot plant and part of a 270,000-square-foot plant there.
Putman bought out his partners soon after Penn Color opened and remains active with the firm. His son, Kevin Putman, is president and chief executive officer.