A Schulman to acquire US compounder ECM Plastics for $36.5m

20 August 2012 14:40  [Source: ICIS news]

LONDON (ICIS)--A Schulman has signed a definitive agreement to acquire fellow US-based plastics compounder ECM Plastics for $36.5m (€29.6m), it said on Monday.

A Schulman said the acquisition of Massachusetts-based ECM enhances the group’s capabilities in the growing markets of personal care and cosmetics and expands its US footprint in colour matching and custom compounding in higher-value-added specialty compounds.

The transaction is expected to close in early September.

"With ECM's expertise in custom colour matching, higher-value compounding and specialty additive formulations, we believe they are an excellent strategic fit as we continue to focus on niche products,” said Joseph Gingo, chairman, president and CEO.

“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," he added.

Gustavo Perez, general manager and chief operating officer of the Americas for A Schulman, said: “The acquisition of ECM will expand our capabilities in a number of markets, especially personal care and cosmetics, where ECM has a strong presence.”

ECM generates approximately $40m in annual sales, according to A Schulman.

In addition to the ECM acquisition, A Schulman announced the sale of its vinyl chloride compounding facility in Bellevue, Ohio, to Mitsubishi Chemical Performance Polymer, a wholly owned subsidiary of Japan’s Mitsubishi Chemical Corporation, for an undisclosed fee.

The sale will allow A Schulman to continue its US focus on higher-value technical products in keeping with its global strategy, it said.

($1 = €0.81)

By: Franco Capaldo
+44 (0)20 8652 3214

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly