ASHTABULA, OHIO (Updated May 2, 4:40 p.m. ET) —
Arsenal officials said that Chromaflo will be the industry's largest independent global pigment dispersion platform. No purchase price was disclosed in either deal.
Chromaflo will be based in
Chromaflo will operate Plasticolors' manufacturing plant in Ashtabula; as well as Colortrend plants in Lockland, Ohio; Brampton, Ontario; Maastricht, the Netherlands; and Dandenong, Australia. The combination “positions the new company to address the increasingly complex customer technical requirements in a multitude of applications and end markets,” Arsenal partner Timothy Zappala said in an April 30 news release.
In a May 2 email, Plasticolors CFO Mark Astorino - who will hold the same position with Chromaflo - said the new firm hopes to create as many as 50 new jobs in
Colortrend provides color systems to architectural and industrial coatings markets, while Plasticolors supplies custom pigments to thermoset plastics and industrial coatings markets. In a May 2 phone interview, Zappala said that there hadn't been much competition between Plasticolors and Colortrend.
After the deal closes, Chromaflo will transfer Plasticolors' technologies for thermoset plastics markets to operations in
“With this deal, we get the ability to sell globally and the ability to share in technology,” He added. “That will enable us to cross-pollinate the business.”
The deals are the second and third plastics deals that Arsenal has made this year. In January, the firm bought a majority stake in Fluoro-Seal Holdings LLC — a plastic barrier treatment maker based in
Prior to its three plastics deals this year, Arsenal's most recent plastics-related transaction came in 2010 when it sold plasticizer maker Genovique Specialties to Eastman Chemical Co. Looking ahead, Zappala said that Arsenal would be willing to look at acquiring other plastics businesses that were “more additive-related, not in commodities.”
“Our interest is in niche, value-added technologies,” he added. “Ones that can do product formulations in the value chain.”
Being acquired is a change of pace for Plasticolors, which itself had made five acquisitions in the last 12 years. Most recently, the 150-employee firm in January bought several non-urethane pigment dispersion product lines from Milliken & Co. Plasticolors was founded in 1970 and is employee-owned.
In his email, CFO Astorino said the merger “creates opportunities on several fronts.”
“Although the merger brings to a close our employee ownership structure, this is a wonderful opportunity for our employees to lock in financial security,” he wrote. “The merger was an opportunity to restructure the equity of the company in a way that would allow us to strategically position the company with a solid and strategic global footprint.”
“We are proud of the Blanchard [family] legacy that provided the vision and insight to form such a fine company,” he added “We look forward to continuing under the Chromaflo name with the same fortitude and vision.”