(By Balaseshan) PolyOne Corp. (NYSE: POL), a provider of specialized polymer materials, said it has agreed to purchase advanced composite materials producer Glasforms Inc. for $34 million.
PolyOne expects the acquisition of Glasforms, a manufacturer of glass and carbon fiber reinforced polymers and advanced composite products, to be accretive to earnings in 2013.
The purchase marks PolyOne's entry into advanced composite technology, an adjacency consistent with the company's proven strategy of providing specialty solutions that deliver high value to customers.
Glasforms will continue to operate from its Birmingham, Alabama campus, which includes six buildings and ample capacity for future expansion. The company employs about 300 associates, and its founder and president, Peter Pfaff, will continue in his leadership role along with other members of the Glasforms management team.
Glasforms will integrate as part of PolyOne's Specialty platform, under the direction of Craig Nikrant, senior vice president and president, Global Specialty Engineered Materials.
Glasforms has grown sales at a 36% compound annual growth rate since 2010 and in fiscal year 2012 achieved revenues in excess of $50 million. Glasforms manufactures advanced composite products for use in demanding applications across the electrical and telecom, energy, transportation, healthcare, and security and defense markets.
The end products include applications for endoscopy wands, wind turbine blade stiffening components, commercial truck floors and railcar doors for light-weighting, composite utility poles to replace wood and metal, earthquake-proof bridge decks, and specialized rods used in the production of oil and gas.
POL ended Wednesday's regular session up 0.15% at $20.04. The stock has been trading between $11.07 and $21 for the past 52 weeks.