Investment firm Spell Capital Partners LLC is ending 2006 the same way it began: By acquiring a plastic materials maker.
Minneapolis-based Spell Capital is buying Breen Color Concentrates Inc., a color concentrate maker based in Lambertville, N.J. Officially, the deal is being made by PVC Compounders Inc., a Kendallville, Ind.-based firm that Spell bought in February.
No purchase price was disclosed, but an industry source valued the Breen transaction at less than $10 million.
Spell Capital is buying Breen from Florida Capital Partners Inc., a Tampa, Fla.-based investment firm that bought Breen from founder Vincent Breen in 1998. Industry sources estimate the firm's annual sales at about $15 million and its employee count at about 100.
Breen has a plant in Lambertville and is one of North America's three largest suppliers of PVC concentrates for the wire and cable market. The 30-year-old firm also makes concentrates based on polyethylene, polypropylene, ethylene vinyl acetate and several specialty resins.
PVC Compounders President Rich Leary said Breen's products are ``a nice addition that will give [PVC Compounders] a different product offering.''
Breen management is expected to remain in place. Breen President Howard DeMonte - who has been with the firm for 10 years - said the deal will allow Breen's products to reach more Midwestern markets while getting PVC Compounders material into the East Coast.
``The most important thing is that Spell Capital will give us support for continuing growth,'' DeMonte said. ``We're very excited. We think this will allow our business to take off in the future.''
The purchase gives Spell Capital five plastics companies in an eight-member portfolio of manufacturing firms. Spell Capital's plastic holdings also include injection molders Victor Plastics Inc. of Victor, Iowa, and Midwest Plastic Components of Minneapolis, along with Bremen, Ind.-based wire maker Copperfield LLC. Copperfield is a longtime Breen customer, DeMonte said.
Spell Capital-owned firms have total annual sales of more than $1 billion.
Blaige & Co., a Chicago-based mergers and acquisitions firm, advised Florida Capital on the deal.