Acquisition of Massachusetts-based plastics compounder enhances A. Schulman's capabilities in growing markets such as personal care and cosmetics.
AKRON, OH—A. Schulman, Inc. a leading international supplier of high-performance plastic compounds and resins, has announced it has agreed to acquire ECM Plastics, Inc., a privately-owned, leading plastics compounder located in Worcester, MA, for $36.5 million.
ECM Plastics provides custom color matching, specialty additive formulations and plastic compounding based on a broad range of thermoplastic resins for a variety of demanding markets. Its advanced color development technology ensures consistent critical color matching and high-performance results for applications in consumer goods, cosmetics packaging, coated fabrics, optical products, electronics, bioplastics, geotextiles, sporting goods, toys and novelties, wire and cable products, aerospace components, and medical devices. The one-facility company employs approximately 140 people.
ECM generates approximately $40 million in annual sales, with the transaction expected to close in early September 2012.
“With ECM’s expertise in custom color matching, higher-value compounding and specialty additive formulations, we believe they are an excellent strategic fit as we continue to focus on niche products.” says A. Schulman chairman, president and chief executive officer Joseph M. Gingo. “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.”
Gingo adds that A. Schulman has exited its legacy plants that were dedicated primarily to serving the volume automotive market and shifted to higher-value products in engineered plastics, specialized color and masterbatch.
Gustavo Perez, general manager and chief operating officer of the Americas for A. Schulman, states, “The acquisition of ECM will expand our capabilities in a number of markets, especially personal care and cosmetics, where ECM has a strong presence. In addition, ECM has a robust technical organization focused on product development that will enhance our ability to introduce new and innovative products to the marketplace.”
A. Schulman also announced the sale of its vinyl chloride compounding facility in Bellevue, OH, to Mitsubishi Chemical Performance Polymers, Inc., a wholly-owned subsidiary of Mitsubishi Chemical Corporation. Terms of the sale were not disclosed.