A. Schulman to acquire assets of Ferro's Specialty Plastics business

A. Schulman Inc has entered into an agreement to purchase a selected majority of the assets of the Specialty Plastics business segment from Ferro Corporation for $ 91 million in cash. The purchase agreement includes four facilities located in the US as well as operations in Spain. Subject to the satisfaction of customary closing conditions and regulatory approvals, the transaction is anticipated to close during the fourth quarter of A. Schulman's current fiscal year ending August 31, 2014. Excluded from the transaction are Ferro's plastics business and operations in Edison, New Jersey, and Carabobo, Venezuela.
 
The Specialty Plastics assets included in the pending transaction achieved sales of $154 million in 2013, with approximately two-thirds of these revenues generated in the US. As a result, this acquisition is expected to deliver important geographic diversification benefits to A. Schulman. 
 
The Specialty Plastics segment is a global supplier of custom engineered plastic compounds, colourants, and liquid coatings, primarily focused on thermoset plastic technology. The business offers a broad portfolio of proprietary products and recognised brand names serving a wide range of end markets including packaging, transportation, construction, appliances and agriculture.   
 
"Specialty Plastics is a performance-driven, technically demanding business, and this business segment is what initially attracted us to seek to acquire Ferro back in 2013.  Strategically combining the two businesses provides the existing customers of the Specialty Plastics segment with an expanded product portfolio, technical solutions and global resources with the full support of the A. Schulman team. We are delighted to have reached an agreement to purchase these assets, and we plan to leverage their capabilities, competitive advantages and footprint to become an integral part of our growth engine," said Joseph M Gingo, Chairman, President and Chief Executive Officer of A. Schulman.
 
Bernard Rzepka, Executive Vice President and Chief Operating Officer, A. Schulman, said, "We continue to strengthen our US operations and expand our global capabilities in engineered plastics, masterbatch solutions and custom performance colours, which represent outstanding profitable growth opportunities and are integral to our value creation strategy. We are impressed with the highly talented Specialty Plastics team, and we expect its demonstrated focus on customer satisfaction, innovation and technological expertise to complement our performance-oriented growth culture. The team has an impressive track record of developing high-quality specialty compounds, colours and coatings that exceed the needs of its diverse customer base."
 
The Specialty Plastics segment's products include colour additives and concentrates with a focus on high-margin colour, combination and additive masterbatches; filled and reinforced plastics with a strong position in glass-filled polypropylene and custom formulating capabilities; advanced polymer compounds and alloys including melt-processable rubber, moulding and extrusion materials, and custom compounds. Its facilities are strategically located to competitively and efficiently serve its target markets and customers, with available capacity for growth in all segments.