PVC compounder Manner Plastics LP has acquired the flexible PVC compounding business of PVC Compounders LLC from investment firm Spell Capital LLC. As a result of the sale, Minneapolis-based Spell is closing compounding plants in Kendallville and Marion Ind., and El Paso, Texas. Those moves will eliminate about 130 jobs.
No purchase price was disclosed in the deal, in which McKinney, Texas-based Manner will pick up receivables, inventory, customer lists and formulations. No equipment, machinery or real estate is included in the transaction, which closed Feb. 9.
The business being acquired had 2008 sales of $34 million, according to Manner President Raj Bhargava, sole owner of the firm he founded in 2000.
Manner and PVC Compounders competed in some wire and cable markets, but had different focuses, Bhargava said in a Feb. 10 telephone interview. Manner does more work in wire for the building and telecommunications markets, while PVC Compounders has a concentration in the automotive and appliance fields. Manner also sells into the profile and tubing segments.
Manner will add 10-12 jobs as a result of the sale, including some PVC Compounders workers.
Spell closed the Kendallville and El Paso plants Feb. 6. The Marion plant closed Feb. 13. Equipment and machinery from all three plants will be sold at auction, Bhargava said.
Manner employs 30 and operates 105 million pounds of annual compounding capacity on five lines. The firm added the fifth line and 40 million pounds of capacity in 2008.