S&E Specialty Polymers LLC is going after Tier 1 automotive suppliers, after having acquired most of the intellectual property rights for PVC products from Lynn Plastics LLC.
Lunenburg-based S&E bought an exclusive license to use the Lynn, Mass.-based company's formulations on a worldwide basis. Terms were not disclosed.
Private equity firm Republic Financial Corp, of Aurora, Colo., bought Lynn in July and is selling off its assets.
Among the specific assets S&E acquired Aug. 4 are the formulations, United Laboratories certifications, various automotive approvals as well as laboratory data, said S&E's operations vice president, John Ingargiola.
``This brings an entirely new market for us,'' said Ingargiola. He noted that S&E already serves automotive aftermarket applications.
S&E produces compounds from PVC, polyolefins and thermoplastic olefins, as well as styrenic-based compounds, for the auto and wire and cable industries.
Ingargiola said the deal was internally funded. Besides increasing S&E's exposure to the auto industry, it also strengthens the firm's wire and cable offerings, he said. The acquisition could boost S&E sales by more than 30 percent, and may mean 8-10 more hires, he added.
S&E employs 70 at its 85,000-square-foot facility. The company is working with some former Lynn customers to make a seamless transition, Ingargiola said. The auto work, which is in the sampling phase, must be re-certified, a process that takes about three months, he said.
S&E Specialty Polymers was formed in December, when Steven Graham purchased the former Gitto Global Corp, which last September filed for Chapter 11 under the U.S. Bankruptcy Code.
S&E also is expanding research and development capabilities, hiring Stanley Trykowski, a former senior chemist at Lynn.
``The only way to survive in this country is be progressive, aggressive and grow the company,'' Ingargiola said.
Republic Financial said in a news release that reduced sales and increased resin prices in the last several months hurt Lynn's liquidity and that it had defaulted to its senior creditor. The company is continuing limited operations for the next several weeks through an agreement with a customer.
Lynn's chief restructuring officer, John Rudd of Newmarket Partners of Cleveland, remains in charge of operations.