PURCHASE EXPANDS SPARTECH

ST. LOUIS Spartech Corporation has purchased a portion of Penda Corporation's custom extrusion division.

With the acquisition, Spartech Plastics becomes the largest custom rigid plastic sheet producer in the country, with sales in excess of 150 million pounds a year.

The new business and related assets included in the transaction will be placed in the rigid sheet division of Spar Tech, which operates six extrusion plants throughout the U.S.

"This acquisition of a portion of Penda's business, of about $15 million, will raise our rigidsheet divisions revenue to nearly $145 million over the next year," said Bradley B. Buechler, Spartech president and chief executive officer. "That increases our share of the $850 million domestic custom sheet market to about 17 percent."

More importantly, added Buechler, the purchase enhances Spartech Plastics capabilities in the thin gauge packaging and styrene lithographic/advertising markets. "We have targeted both of these markets for sizable growth over the next three to five years," he said.

David B. Mueller, Spartech's vice president and chief financial officer, said that "the acquisition price for both the equipment and business being purchased, less than $2.5 million, will be funded out of operating cash flow and will be paid in installments as the equipment is delivered."

Spartech has rigid sheet operations in several locations, including One Atlas Drive in Cape Girardeau. The firm also operates Resin Exchange on Nash Road here.