Chemical company PolyOne Corporation has struck a US$246 million deal to buy custom compounder and sheet extruder Spartech Corporation.
The deal, expected to close in the first quarter of 2013, values Spartech at US$393 million, including assumption of US$142 million in debt, the companies said in a news release.
Along with its aerospace and security products, Clayton, Mo.-based Spartech makes consumer and medical packaging products. It makes plastic sheet, specialty film laminates, specialty plastic alloys, color concentrates and blended resin compounds and has annual revenues of about US$1.2 billion.
"I am extremely pleased to announce we've reached an agreement to acquire Spartech," said Stephen D. Newlin, chairman, president and CEO of Avon Lake, Ohio-based PolyOne Corporation. "Spartech expands PolyOne's specialty portfolio with adjacent technologies in attractive end markets where we already participate as well as new ones like aerospace and security. By combining Spartech's leading market positions in sheet, rigid barrier packaging and specialty cast acrylics with PolyOne's capabilities, we can accelerate growth for both companies. We believe this is a very compelling transaction for our shareholders, customers and employees."
Spartech's three business segments operate 30 facilities in the U.S., Mexico, Canada and France. Last week, Spartech announced plans to close its facility in Stratford, Ont., by April 2013.