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Uniroyal Surges After Spartech Buys Its High Performance Plastics Unit

The deal is valued at $217.5 million.
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Uniroyal Technologyundefined shares rose sharply on news Spartech (SEH) would buy its High Performance Plastics unit for some $217.5 million.

Uniroyal was up 3 11/16, or 19%, to 23 1/2 in early morning trading Monday. Spartech shares were up as well, rising 1 7/8, or 7%, to 30 1/4. Trading in Uniroyal had been halted pending the Monday morning announcement. (Uniroyal ended up 3 5/16, or 17%, to 23 1/4. Spartech closed up 2 1/4, or 8%, to 30 5/8.)

The deal is expected to close Feb. 29, pending necessary approvals. "When completed, this transaction will increase Spartech's annual sales from approximately $810 million (pro forma for all fiscal 1999 acquisitions) to a level approaching $950 million by the end of fiscal 2000,'' Bradley Buechler, Spartech's chairman, president and chief executive officer, said in a statement.

Spartech said it expects the deal to expand its product offerings to customers and increase its production capacity through nine additional manufacturing plants. South Bend, Ind.-based High Performance Plastics produces proprietary plastic products and had annual sales of $130 million for its most recent fiscal year ended Sept. 26, 1999. Spartech said it expected to retain nearly all High Performance personnel.

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Spartech produces engineered thermoplastic materials, polymeric compounds, and molded and profile products for the plastics industry.