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Non-Tech : SPARTECH (SEH) - AN UNDISCOVERED GEM -- Ignore unavailable to you. Want to Upgrade?

To: Robert Bustamante who wrote (27)	2/3/1998 8:40:00 PM
From: Paul B.	Read Replies (2) \| Respond to of 66

There has been a news release about Spartech purchasing another company. The St. Louis Post-Dispatch also covered the news story with a short article. Since the newspaper always seems to add a few details not covered in the release, I thought I would share them with you: Spartech Corp. said Monday that it would buy yet another plastics manufacturer, its seventh acquisition since 1993. Spartech is already No. 1 in North America in custom sheets and rolls of plastic, which other companies convert into everything from truck bumpers to soles of tennis shoes. With the latest acquisition, Spartech will move up in the ranks of another segment in the industry: coloring plastic and compounding it with other ingredients, such as glass and talc. "They've gone from being 'somewhat interested' to someone who is a real player" in this segment, said Mike Braig, an analyst who follows Spartech for A.G. Edwards & Sons Inc. Polycom Huntsman, which is privately held, has eight plants in the United States and one in France. Most of Polycom's plastics end up in cars, appliances, electronics and packaging, said Bradley Buechler, Spartech's president and chief executive. "It's a super addition for us." Braig noted that Polycom's profit margin is higher that Spartech's in the color and compounding segment. Buechler said the purchase also would give Spartech new geographic coverage and additional research and development staff. Polycom has 15 people working in R&D. Polycom Huntsman is a joint venture between Ralph Andy, who founded Polycom in l977, and Huntsman Chemical Corp., the country's largest closely held chemical company. When the purchase is completed, probably at the end of March, Spartech will have 34 plants.