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