This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

A. Schulman To Buy ICO For $191 Million

AKRON, Ohio (AP) ¿ A. Schulman Inc., which makes plastic compounds and resins for consumer and automotive markets, said Thursday it agreed to pay $191.4 million to buy all outstanding shares of ICO Inc., which makes custom polymer powders and plastic film concentrates.

A. Schulman said the acquisition, which requires approval from ICO's shareholders, would improve its position in global markets. The transaction does not require approval by A. Schulman's shareholders.

A. Schulman said the transaction will include $105 million in cash and 5.1 million shares of common stock. Shareholders of ICO, based in Houston, will receive about $6.79 per share. That represents a 51 percent premium over ICO's closing price of $4.50 Wednesday.

A. Schulman said it will pay the cash portion of the transaction from cash on hand.

Joseph M. Gingo, A. Schulman's chairman, president and CEO, said the acquisition provides A. Schulman the opportunity to significantly expand its global presence, particularly in rotomolding, or rotational molding ¿ a manufacturing process in which parts are assembled from several pieces molded as one, eliminating high fabrication costs.

The two businesses are complementary across markets, product lines and regions, Gingo said.

With the acquisition of ICO's operations, A. Schulman will increase its U.S. presence in masterbatch ¿ a concentrated mixture of pigments and additives ¿ and add plants in the high-growth market of Brazil and facilities in Australia.

A. Schulman also would add another facility in Asia, bringing to four its number of plants in the region.

If the deal closes in the spring, A. Schulman said the acquisition will contribute about $150 million to revenue and add to earnings on an operating basis in fiscal 2010.

ICO shares soared $2.18, or 48 percent, to $6.68 in premarket activity. They have ranged from $1.03 to $5.14 over the past year.
Copyright 2009 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
SHLM $27.53 -1.29%
AAPL $93.64 -0.11%
FB $118.57 0.84%
GOOG $698.21 0.75%
TSLA $241.80 0.43%


Chart of I:DJI
DOW 17,891.16 +117.52 0.66%
S&P 500 2,081.43 +16.13 0.78%
NASDAQ 4,817.5940 +42.2360 0.88%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs