SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) August 30, 1994
SPARTECH CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-5911 43-0761773
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
7733 Forsyth Boulevard, Suite 1450, Clayton, Missouri 63105
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (314) 721-4242
SPARTECH CORPORATION
FORM 8-K
Item 5. Other Events
On August 30, 1994, Spartech Corporation (the "Company") announced
that it signed a letter of intent to purchase the assets of the Extrusion
and Color Divisions of Pawnee Industries.
Reference is made to a copy of the Company's press release, attached
as Exhibit 99, which is incorporated herein by reference, for a discussion
of the Company's announcement.
Item 7. Financial Statements and Exhibits
(a) Exhibits
99 Spartech Corporation Press Release issued on
August 30, 1994
SIGNATURES
Pursuant to the requirements of the Securities Act of 1934, the
registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
SPARTECH CORPORATION
Date 8/30/94 By
David B. Mueller
Vice President of Finance and
Chief Financial Officer
EXHIBIT 99
Company Contacts:
Bradley B. Buechler, President
and Chief Executive Officer
David B. Mueller, V.P. of Finance
and Chief Financial Officer
For Immediate Release
Tuesday, August 30, 1994
SPARTECH ANNOUNCES INTENT TO PURCHASE
THE ASSETS OF PAWNEE EXTRUSIONS AND COLOR
ST. LOUIS, MISSOURI, August 30, 1994 -- Spartech Corporation
(AMEX-SEH), announced today that it has signed a letter of intent
to acquire the assets of Pawnee Industries Inc.'s Extrusion and
Color Divisions -- long established manufacturers of rigid plastic
sheet and color concentrates based in Wichita, Kansas.
Spartech's President and Chief Executive Officer, Bradley B.
Buechler, stated that "We are enthusiastic about the prospect of
adding Pawnee's extrusion and color divisions to the Spartech
family of companies. The addition of Pawnee will be of strategic
importance in further strengthening our current eight plant rigid
sheet & rollstock segment -- Spartech Plastics -- while also
enhancing the capabilities within our Spartech Compounding group.
Pawnee's two rigid sheet plants located in Wichita, Kansas and
Paulding, Ohio, plus their color concentrate house situated in
Goddard, Kansas, will give us more than the additional capacity we
were looking for when we recently announced our intent to open a
new midwestern Spartech Plastics' facility by early 1995. When
completed, the combination of Spartech Corporation's current annual
sales volume of just over $240 Million and Pawnee's recent running
rate of $60-65 Million, should increase our annual production
-more-
capacity and total Company sales to more than 400 Million pounds
and $300 Million, respectively."
David B. Mueller, Spartech's Vice President of Finance and
Chief Financial Officer, stated that "Current plans call for a
definitive asset purchase agreement to be executed in the next two
weeks, followed by the closing of the transaction, subject to
Federal Trade Commission approval, expected on or before October
28, 1994. The acquisition will be financed with additional
borrowings under the Company's Senior Credit Facility. We expect
our debt-to-equity ratio to be approximately one to one after the
transaction. Terms of the acquisition will be disclosed when the
transaction is completed."
Finally, Mr. Buechler added, "Spartech plans on putting
additional manufacturing equipment and capital into Pawnee's
facilities during the next 12-18 months. We also hope to be able
to retain all key Pawnee personnel following completion of the
transaction."
Spartech is an intermediate processor of thermoplastics which
develops and converts resins into semifinished products for a wide
spectrum of manufacturing customers.
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