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
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.