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A. Schulman completes acquisition of specialty plastics assets from Ferro Corporation

July 07/2014

MOSCOW (MRC) -- A. Schulman, Inc. has announced that it has completed its acquisition of a selected majority of the assets of the Specialty Plastics business segment from Ferro Corporation for USD91 million in cash, as per the company's press release.

The agreement to acquire the assets was first announced on June 4, 2014. The acquisition includes four facilities located in the United States as well as operations in Spain.

"This acquisition is an excellent strategic complement to our existing capabilities and reflects our ongoing effort to expand our product offerings and geographic reach in target markets," said Joseph M. Gingo, Chairman, President and Chief Executive Officer of A. Schulman. "We welcome the highly talented Specialty Plastics team to A. Schulman, and we are confident that they will fit in well with our performance-oriented growth culture."

The Specialty Plastics segment is a global supplier of custom engineered plastic compounds, colorants, and liquid coatings. The business offers a broad portfolio of proprietary products and recognized brand names serving a wide range of end markets including packaging, transportation, construction, appliances and agriculture.   

The acquisition is expected to be accretive to adjusted earnings per share. A. Schulman anticipates achieving approximately USD5.5 million in synergies within 12 to 18 months following the close of the transaction, driven primarily by sourcing activities and plant efficiency actions. 

As MRC informed previously, in mid-2012 A. Schulman Inc. inked a definitive agreement to acquire ECM Plastics, a privately owned plastics compounder located in Worcester, Mass., for USD36.5 million. Besides, Jeddah-based National Petrochemical Industrial Company (Natpet), a subsidiary of Alujain Corporation, entered into a joint venture agreement with A. Schulman to produce polypropylene compounds.

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. A. Schulman's fiscal third-quarter earnings fell 69% amid continued sluggishness in European markets and higher-than-expected costs in Latin America, where the company has been consolidating its Brazilian operations.  A. Schulman reported net sales of USD2.1 billion for the fiscal year ended August 31, 2013.
Author:Margaret Volkova
Tags:compounding, adhesives, construction, packaging, paints and coatings, masterbatches, A.Sshulman.
Category:General News
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