Chroma Color Corp. is "back on the acquisition trail," its CEO says.
Chroma CEO Tom Bolger said in a Feb. 6 phone interview that Chroma's recent purchase of Plastics Color Corp. unites two well-known color concentrate makers.
No purchase price was disclosed in a Jan. 31 news release announcing the deal. The transaction includes PCC plants at its headquarters in Calumet City, Ill., and in Asheboro, N.C.
PCC employs about 100 at its two plants and has annual sales of around $30 million, according to Bolger, who's led Chroma since 2005.
Bolger said that Chroma "is made up of several different parts" and is looking at other prospects.
"We're looking for companies to acquire, not just to gain market share, but to get additional capabilities," he said. "PCC has a lot of focus in pharmaceutical and medical, where we had done some work but wanted to do more. They have a lot of approvals and qualifications in those markets."
Medical-related markets are PCC's largest end market. The firm also does work in building and construction, roofing, wire and cable and other sectors.
Bolger said that Chroma had competed with PCC in some markets but that there wasn't much overlap in the two firms' customer bases. He added that Chroma plans to keep both PCC plants open since they have "a vastly different product mix" than other Chroma plants.
Chroma President Howard DeMonte said in a Jan. 31 news release that the acquisition "further supports our strategy of pursuing sustainable, organic growth by deploying Chroma's proven patented colorant technologies into new markets."
PCC was founded in 1964 as Kamco Plastics, a styrene compounder that produced reprocessed color compounds. By 1989, the firm had changed its name to PCC and was making color and white concentrates as well as other additives. PCC is a unit of PMC Global Inc., an industrial conglomerate based in Sun Valley, Calif.
In a news release, PMC managing partner Chris Aye said that his firm "is proud to have supported the [PCC] management team in creating an extensive portfolio of specialty color and additive solutions to the plastics marketplace."
Arsenal Capital Partners created Chroma through the combination of three companies: Carolina Color, Breen Color Concentrates and Chroma.
Arsenal Operating Partner George Abd said in a release that the addition of PCC "continues Chroma's strategy of growth through both innovation and new product development as well as strategic business acquisitions."