This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

A. Schulman Announces Acquisition Of ECM Plastics, Inc., A U.S.-Based Producer Of Custom Color, Specialty Additive Masterbatch And Niche Engineered Plastics Products; And Sale Of Bellevue, Ohio, Compounding Facility

Stocks in this article: SHLM

AKRON, Ohio, Aug. 20, 2012 /PRNewswire/ -- A. Schulman, Inc. (Nasdaq-GS: SHLM) announced today that it has signed a definitive agreement to acquire ECM Plastics, Inc., a privately owned, leading plastics compounder located in Worcester, Massachusetts, for $36.5 million.  ECM Plastics, Inc. generates approximately $40 million in annual sales. After expected synergies, operating margins are projected to exceed 10%, with operating profit per pound to surpass 15 cents.  The transaction is expected to close in early September pending the completion of closing requirements.

"With ECM's expertise in custom color matching, higher-value compounding and specialty additive formulations, we believe they are an excellent strategic fit as we continue to focus on niche products. We expect ECM to provide strong synergies when combined with our current masterbatch and engineered plastics businesses allowing us to strengthen our position for long-term profitable growth in the United States," said Joseph M. Gingo, Chairman, President and Chief Executive Officer.

"As we have undertaken this shift to higher-value products in engineered plastics, specialized color and masterbatch, we have exited our legacy plants that were dedicated primarily to serving the volume automotive market," Gingo continued. "In addition to the ECM acquisition, we have announced the sale of our Bellevue facility, which marks the completion of this transformation. We are pleased to have found a strong buyer in Mitsubishi Chemical Performance Polymers."

Gustavo Perez, General Manager and Chief Operating Officer of the Americas for A. Schulman, stated, "The acquisition of ECM will expand our capabilities in a number of markets, especially personal care and cosmetics, where ECM has a strong presence.  In addition, ECM has a robust technical organization focused on product development that will enhance our ability to introduce new and innovative products to the marketplace."

"The highly talented teams at ECM Plastics and A. Schulman share a commitment to innovation and customer focus that is unsurpassed in our industry," said Wayne Marquis, President of ECM Plastics.  "Becoming part of A. Schulman's global organization is an exciting opportunity to extend our technology offerings to a wider range of customers and markets."

ECM Plastics provides custom color matching, specialty additive formulations and plastic compounding based on a broad range of thermoplastic resins for a variety of demanding markets. Its advanced color development technology ensures consistent critical color matching and high-performance results for applications in consumer goods, cosmetics packaging, coated fabrics, optical products, electronics, bioplastics, geotextiles, sporting goods, toys and novelties, wire and cable products, aerospace components, and medical devices. The one-facility company employs approximately 140 people.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs