Spartech sells wheel unit to D-S owner
CLAYTON, MO. Spartech Corp. sold its wheels business for $34.5 million to a private equity firm that has renamed the unit Custom Wheels Inc.
The buyer, Hamilton Robinson Capital Partners of Stamford, Conn., said there will be no changes in management or day-to-day operations at Custom Wheels.
The sale price includes $6 million of contingent payments based on future performance of the business. Spartech plans to use the proceeds, in part, to pay down debt.
P&M Corporate Finance of Southfield, Mich., advised Spartech on the deal.
According to the companies, Spartech was the largest North American maker of custom engineered, non-pneumatic wheels for lawn and garden products and wheelchairs. The wheels unit, with plants in Warsaw, Ind.; Tupelo, Miss.; and Reynosa, Mexico, have annual sales of about $41 million.
Spartech is restructuring to focus on its core sheet and compounding businesses.
Hamilton Robinson's plastics-related holdings include machinery firms Davis-Standard LLC and Black-Clawson Converting Machinery Inc.
Sabic, Dow each deal with emergencies
PITTSFIELD, MASS. Emergency crews on Oct. 27 dealt with incidents at two resin plants a Sabic Innovative Plastics facility and a Dow Chemical Co. plant.
Sabic experienced an explosion at its plant in Mount Vernon, Ind. According to news reports, the plant's response team extinguished the resulting fire, and there were no injuries.
Spokeswoman Shelia Nabb told the Evansville Courier & Press that Sabic was unsure of the cause of the explosion or the extent of damage. She added that employees and contractors were allowed back to work Oct. 27.
Sabic Innovative Plastics is based in Pittsfield, Mass.
Dow's emergency began Oct. 25 when the company discovered a leak in an underground pipe at the firm's Freeport, Texas, complex.
According to a news release, Dow's first responders secured the area to prevent the leak from spreading. Workers went door-to-door in a six-block area, telling residents of about 65 nearby homes to evacuate. Dow advised residents they might have to stay away for three to five days.
The pipe leaked toluene diisocyanate, which is used to make polyurethane. Dow is based in Midland, Mich.
California city bans PS carryout boxes
RICHMOND, CALIF. Richmond has joined the list of northern California communities that have banned polystyrene takeout containers.
The ban, approved Oct. 20, follows a measure enacted earlier by California's Marin County, and will go into effect July 1. The Richmond ban requires restaurants and vendors to use biodegradable or compostable takeout packaging made of paper, aluminum, or plant-based plastics. The ban does not include straws, utensils, or lids.
The city estimated that biodegradable or compostable containers will cost restaurants 12 cents per unit more than foam containers.
Altogether, 25 California towns and two counties have banned PS takeout packaging. Four cities and one county have banned the packaging at government facilities.
Reynolds selling envelope-film plants
LEWIS CENTER, OHIO Multi-Plastics Inc. of Lewis Center is in advanced negotiations to buy plants in Hazleton, Pa., and Avenel, N.J., from longtime partner Reynolds Packaging Kama.
Reynolds is looking to exit the envelope-window films market. Reynolds and Multi-Plastics have been partners for more than 30 years, with Multi-Plastics providing slitting and distribution for window films the Kama plants extruded.
Paul Hinspeter, vice president of sheet and film for the Hazleton-based Reynolds unit, would not give details of the sale, which the companies expect to close in early November.
Reynolds Packaging Kama is a subsidiary of Richmond, Va.-based Reynolds Packaging Group, which is owned by Rank Group of Auckland, New Zealand.
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