A. Schulman to acquire US niche engineered plastics producer
A. Schulman has signed an agreement in principle to acquire the US niche engineered plastics compounding and distribution business, Network Polymers, for about $50m.
Network Polymers, with recorded revenues of $65.3m in fiscal 2012, provides thermoplastic resins and alloys, as well as operating a 72,000ft² production unit in Akron, Ohio, US.
The company's portfolio includes the Centrex ASA family of products, as well as the Diamond Polymer brand of ABS, ABS/PC, ASA and ASA/PC thermoplastic products.
This acquisition is expected to strengthen A. Schulman's US business position, provide complementary specialty business in ABS and ASA engineered plastics and expand its US distribution business.
A. Schulman chairman, president and chief executive officer Joseph Gingo said the company has demonstrated a strong commitment to growth, through opportunistic and strategic acquisitions, as well as organically.
"Network Polymers is an excellent fit with our ongoing strategy as we continue to enhance our niche engineered plastics business in the US," Gingo added.
"Network Polymers will provide greater penetration in key markets such as building and construction, agricultural products and lawn and garden.
"In addition, the combination will expand our distribution business in the US."
Subject to completion of due diligence, the deal is expected to be closed within the next few months.
Network Polymers chief executive officer Alan Woll said: "Our organizations have complementary products and technologies, and we expect our similar cultures to fit together well; therefore, we believe this is an exciting opportunity to become part of A. Schulman's global organization."
In less than four years, A. Schulman has successfully executed five acquisitions and two joint ventures as part of its bolt-on acquisition strategy in the specialty plastics business.