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Spartech’s Wheels Business

P&M Corporate Finance Announces the Sale of Spartech’s Wheels Business to Hamilton Robinson Capital Partners 

P&M Corporate Finance (PMCF) is pleased to announce that it served as exclusive financial advisor to Spartech Corporation (NYSE:SEH, Spartech) in the sale of its wheels business (Spartech Wheels) to a group of private investors, consisting of Hamilton Robinson Capital Partners and existing management members. Spartech Wheels is the largest North American manufacturer of custom engineered, non-pneumatic wheels for lawn and garden products and wheelchairs. The division, with production facilities located in Warsaw, Indiana, Tupelo, Mississippi, and Reynosa, Mexico, has annual sales of approximately $41 million. The new ownership will operate under the name Custom Engineered Wheels, Inc. (CEW) with no changes in management structure or day-to-day business operations. 

The sale of Spartech’s wheels business is consistent with its strategic plan and the specific objective to focus its portfolio on core business platforms. With the completion of this sale, Spartech continues its progress of realigning its portfolio, improving its business performance, and positioning the company for growth in core businesses. The sale price for the business was $34.5 million, including $6 million of contingent payments, which are based on future performance of the wheels business. Spartech intends to use the net cash proceeds from the sale to pay down debt and invest in strategic improvement and growth initiatives. 

Spartech Corporation is a leading producer of engineered thermoplastic sheet materials, thermoformed packaging, and polymeric compounds and concentrates. The Company has facilities located throughout the United States, and in Canada, Mexico, and Europe. 

PMCF’s Plastics & Packaging team led a highly competitive sale process that ultimately resulted in a successful transaction with Hamilton Robinson Capital Partners, which closed October 26th, 2009. PMCF also assisted Spartech with the sale of its Canadian profile extrusion business which closed on October 5th, 2009. 

About P&M Corporate Finance 

P&M Corporate Finance, LLC is a middle market investment bank providing merger and acquisition advisory services to companies in North America and Europe. PMCF provides a broad range of services including sale advisory, acquisition advisory, capital raising, and strategic advisory. The firm has dedicated industry teams providing services to the plastics and packaging, life sciences, industrials, and business services industries. PMCF has offices in Chicago, Cleveland, and Detroit.

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