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

AddThis Social Bookmark Button

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

Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index