MOSCOW (MRC) -- A. Schulman, Inc. has purchased Prime Colorants Incorporated, a significant manufacturer of custom colors and additive concentrates in Franklin, Tennessee, for approximately USD15.1 million, reported the company on its site.
"This latest acquisition is part of our ongoing strategy to grow our custom color capabilities in the United States, as well as further transform our US operations from commodity products to a business focused on niche products and services. Color remains an area of opportunity for us in the United States, and the acquisition of Prime will enable us to serve customers better by offering color expertise in an area of the country where we were not previously located," said Joseph M. Gingo, Chairman, President and Chief Executive Officer, A. Schulman.
Additionally, this added capacity will complement the company's recent acquisition of the Perrite Group which brought A. Schulman additional color capabilities in Malaysia, as well as its acquisition of Network Polymers which added to the company's niche business in the United States, he added.
As MRC informed earlier, in September, 2013, A. Schulman, Inc. purchased the Perrite Group, a thermoplastics manufacturing business with operations in Malaysia, the United Kingdom and France, for approximately USD52 million. The acquisition is expected to increase revenues in A. Schulman's Asia Pacific (APAC) segment by 35% and will double the size of the company's existing Engineered Plastics business in the region. It is expected to deliver approximately USD2 million to USD3 million in annual synergies, including initial savings in procurement followed by more significant savings in the area of operational efficiencies.
For 38 years, Prime has provided pelletized color concentrates and dry powder color expertise to customers in the automotive and building and construction markets. Prime also provides an entry point for A. Schulman in the liquid color market. The company expects revenues in calendar 2013 to be approximately USD12 million.
A. Schulman is a global plastics supplier, headquartered in Akron, Ohio, and a leading international supplier of high-performance plastic compounds and resins, which are used as raw materials in a variety of markets. A. Schulman has 33 manufacturing facilities globally. It reported net sales of USD2.2 billion for the fiscal year ended August 31, 2011.
MRC