St. Louis, MO, September 2--Spartech Corp. has agreed to acquire three divisions of Sheboygan, Wis.-based VPI LLC for about $83.5 million, according to the St. Louis Business Journal.
The divisions to be acquired include the sheet products division, which includes two plants that manufacture custom-extruded sheet for the graphic arts, medical packaging and specialty retail markets; the contract manufacturing division, which includes one plant that provides non-carpet flooring and sound barrier products to the transportation industry; and the film and converting division, which includes one plant which prints and laminates products to distributes to various markets.
Bradley Buechler, Spartech's chairman, president and chief executive, said sales in the three divisions are about $110 million a year. The divisions operate at less than 65 percent capacity, which will give Spartech flexibility in serving its current customers and room for expansion, he said.
Buechler said Spartech would pay for the purchase from the proceeds of a $150 million bond offering, which will be funded by seven insurance companies. The deal is scheduled to close Oct. 1.
Buechler said the company expects to retain "practically all" of the employees in the areas after the deal closes. VPI has about 350 employees, according to Hoover's Online.
