Spartech Completes Purchase of VPI Units

St. Louis, MO, October 4--Spartech Corp. said it has completed the acquisition of three divisions of VPI. The operations being acquired, which had annual sales for the trailing twelve months of approximately $110 million, include (1) the Sheet Products Division, a custom extruded sheet manufacturer serving the growing graphic arts, medical packaging, and specialty retail markets located in Sheboygan Falls, Wisconsin; (2) the Contract Manufacturing Division, a provider of non-carpet flooring and sound barrier products to the transportation industry located in Manitowoc, Wisconsin; and (3) the Film & Converting Division, which calenders, prints and laminates products for distribution to various markets including the medical and recreation & leisure industries located in Salisbury, Maryland. Spartech's chairman, president and CEO, Bradley B. Buechler stated, "VPI's divisions will complement our existing core businesses with the Sheet Products Division becoming a member of our Spartech Plastics-North Region and both the Contract Manufacturing and Film & Converting Divisions being integrated into our Color & Specialty Compounds group. "The benefits from the combined operations include: (1) unique product technologies and capabilities serving several specialty markets, (2) strong operating personnel to support growing new product developments and increases in our production efficiencies, (3) available capacity for volume expansion, and (4) added technical and marketing expertise to expand Spartech's reach in certain markets. "This acquisition provides Spartech with several vertical integration opportunities for new products between Spartech Polycom's formulation technology and the Contract Manufacturing Division's fabrication of flooring and sound barrier products for the automotive market as well as between Spartech Plastics extruded sheet products and the Film & Converting Division's printed decorative films for the recreation & leisure markets. These benefits, along with certain cost savings anticipated from the integration of our combined production and sales efforts, will offer us new opportunities to add value to practically all Spartech customers and shareholders."

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