Arsenal and PMC in Deal for Plastics Color

PMC Capital has sold Plastics Color Corporation to Chroma Color, a portfolio company of Arsenal Capital Partners. Chroma is a supplier of color concentrates and additives for the plastics market.

Like Chroma, Plastics Color (PCC) is a provider of color concentrates, additive masterbatches, liquid colorants, thermoplastic compounds and dry blends that are used in the making of plastic products in the pharmaceutical, electronics, consumer packaging, sporting goods, medical and industrial markets.

Plastics Color was founded in 1964 (then Kamco Plastics) and is headquartered and operates from a 70,000 square foot manufacturing facility located near Chicago in Calumet City, Illinois; with additional facilities in North Carolina and China.

Chroma Color was formed by Arsenal through the combination of three businesses: Carolina Color (October 2017), Breen Color Concentrates (October 2017) and Chroma Color (July 2018). Today, the company is a manufacturer of custom formulated masterbatch colors, dry colors, additive concentrates, and pre-color compounds.

The company’s products are used in a wide range of applications in the packaging, wire and cable, building & construction, consumer, medical, healthcare, lawn & garden, sanitation, recreation, and transportation industries. Chroma, led by CEO Tom Bolger, is headquartered outside of Chicago in McHenry, Illinois with additional facilities in New Jersey, Massachusetts, North Carolina, and Ohio (www.chromacolors.com).

“PCC has had a strong base of customers and is known for solution-based products and strong service, both being pillars of Chroma’s offering,” said Mr. Bolger. “PCC’s presence in medical and pharmaceutical products, food packaging, consumer packaged goods, and construction applications will bring more technologies and know-how to Chroma to allow us to better serve our customers and continue our growth.”

“This combination continues Chroma’s strategy of growth through both innovation and new product development as well as strategic business acquisitions,” said George Abd, an operating partner of Arsenal. “It was a pleasure working with the PCC and PMC Capital teams in completing this transaction.”

PMC Capital Partners invests from $10 million to $100 million in companies with revenues of more than $20 million and EBITDA of more than $2 million. Sectors of interest include business services, niche manufacturing, consumer, and telecommunications, media and technology. The firm is based near Los Angeles in Sun Valley, California.

PMC Capital is part of PMC Global, a multinational conglomerate founded in 1974 (PMC stands for Plastics Management Corp.) by Philip Kamins. The firm operates businesses in the chemical, liquefied natural gas, pharmaceutical, plastics, packaging, construction, financial, machinery and fabrication, and health and beauty industries.

“We are proud to have supported the Plastics Color management team in creating an extensive portfolio of specialty color and additive solutions to the plastics marketplace,” said Chris Aye, a managing partner at PMC Capital Partners. “We wish continued growth and success for the Plastics Color team.”

Arsenal invests in middle-market specialty industrial and healthcare companies that have $100 million to $500 million in enterprise value. The firm has offices in New York and Shanghai.

Stout Risius Ross was the investment banking advisor to Chroma.

© 2020 Private Equity Professional | February 4, 2020

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