Compounder Lucent Polymers of Evansville, Ind., has acquired the customer lists and product formulations of Prime Source Polymers, a Warren, Mich.-based compounder that went out of business in late 2003.
Terms were not disclosed. The purchase will expand Lucent's presence in compounds based on polypropylene and nylon, as well as in products made for the automotive market, said Lucent Chief Financial Officer Dennis Straub. To date, Lucent has done more of its business in compounds based on polycarbonate and ABS for the industrial and home building markets.
The firm also does some color concentrate work.
According to Straub, Prime Source ran into financial difficulties and was taken over and closed by a secured lender in November. The lender auctioned the intangible assets earlier this month, and soon plans to do the same with Prime Source's extrusion lines, machinery and other tangible assets.
Lucent, founded in 1997 by compounding veteran Tim Martin, also is expanding its production site in Evansville by 25,000 feet. When that expansion is finished, Lucent will have a total of 325,000 square feet of space at production sites in Evansville and Poseyville, Ind., and a warehouse in Evansville.
Lucent acquired the Poseyville site in 2002 when it bought All Tech Plastics. Lucent still sells products under the All Tech name and plans to do the same with the compounds it bought from Prime Source, Straub said.
The expansion will allow Lucent to add 10-15 jobs in the next 18 months. The privately held firm sold almost 50 million pounds of compounds in 2003, but does not release financial sales figures.