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Specialty polymer materials maker PolyOne Corporation’s (POL - Snapshot Report) impending acquisition of plastic products maker Spartech Corp. (SEH) has been approved by the latter’s shareholders. The transaction is expected to close on Mar 13.

PolyOne, in October 2012, landed a deal to buy Spartech for $393 million (including the assumption of Spartech’s debt). The acquisition will enable PolyOne to enter into new markets including aerospace and security. The deal is expected to be accretive to the company’s adjusted earnings in the first full year. PolyOne expects annual synergies of $65 million by the end of the third year following the takeover.

With the Spartech buyout, PolyOne will make certain changes to its segment structure. Its Specialty Platform will now have three reportable segments – Global Color, Additives and Inks, Global Specialty Engineered Materials and the newly created Designed Structures and Solutions (DSS).

DSS will consist of Spartech's former Custom Sheet and Rollstock and Packaging Technologies businesses.  The entity’s Color and Specialty Compounds business will be integrated into PolyOne's Global Color, Additives and Inks, Global Specialty Engineered Materials, and Performance Products and Solutions units. Moreover, use of the Spartech name will discontinue post-acquisition.

Cleveland-based PolyOne is a leading provider of specialized polymer materials, services and solutions. The company, which has annual sales of $3 billion, has operations across the globe.

PolyOne, in December 2011, acquired ColorMatrix, a highly specialized company with a leading market position in liquid colorants. The acquisition allowed the company to harness its potential in the specialty business and expand globally.

Moreover, PolyOne recently bought privately-held advanced composite products maker Glasforms, Inc. for roughly $34 million. The acquisition offers the company access to advanced composite technology and boosts its specialty solutions portfolio through the addition of new and adjacent technologies and applications. PolyOne expects the acquisition to be accretive to its earnings this year.

PolyOne expects its adjusted earnings per share to rise at a double-digit clip in 2013. The company expects to boost organic revenues and earnings through new technology launches, application development and cross-selling.

PolyOne currently retains a Zacks Rank #3 (Hold).

Other companies in the chemical-plastics space with favorable Zacks Rank are Westlake Chemical Corp. (WLK - Snapshot Report) and A. Schulman, Inc. (SHLM - Snapshot Report). While Westlake retains a Zacks Rank #1 (Strong Buy), A. Schulman holds a Zacks Rank #2 (Buy).

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