US A Schulman looking at other acquisitions after failed Ferro bid

02 July 2013 20:56  [Source: ICIS news]

HOUSTON (ICIS)--A Schulman is moving on from its unsolicited bid made months earlier months for fellow US specialty chemicals producer Ferro, an executive said on Tuesday.

On 4 March, A Schulman bid $6.50/share to acquire Ferro. The offer valued Ferro at $855m (€658m), including an equity value of $563m. Ferro rejected the offer but in late May formed a strategic committee to view its options.

A Schulman has not heard back from Ferro since the committee was formed, said A Schulman CEO Joseph Gingo during a conference call over the compounder’s fiscal Q3 earnings.

“We have given Ferro’s board ample time to come back to us to initiate a discussion,” he said. “At this time, this has not happened, so we have decided to look elsewhere for acquisition opportunities.”

In May, A Schulman reached an agreement with Network Polymers to purchase the specialty compounder for about $50m.

The transaction should be completed by fiscal Q1 2014 and will strengthen A Schulman’s US business position in niche engineered plastics, Gingo said.

“This acquisition will be another step in our continued efforts to transform our US business from what used to be a commodity engineered plastics producer to a supplier of custom performance colors, masterbatch solutions, niche engineered plastics and specialty polymers,” he said.

($1 = €0.77)


By: Jeremy Pafford
+1 713 525 2653



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