A. Schulman Agrees to Purchase ECM Plastics, Inc.
Acquisition expands A. Schulman’s U.S. footprint with operations complementary to the Company’s existing masterbatch and engineered plastics operations
“ECM brings expertise in custom color matching, higher-value compounding and specialty additive formulations and will expand our capabilities in growing markets such as the consumer goods and cosmetics markets. We believe they are an excellent strategic fit as we continue to strengthen our position for long-term profitable growth in the United States.”Joseph M. Gingo
Chairman, President and Chief Executive Officer of A. Schulman
August 20, 2012
Executing on our Strategy
On August 20, 2012, A. Schulman, Inc. announced the signing of a definitive agreement to acquire ECM Plastics, Inc., a privately owned, leading plastics compounder located in Worcester, Massachusetts. This transaction aligns with the Company’s plan to focus on higher-margin, specialty products and its overall strategic goal to become the leading global manufacturer of niche engineered plastics and masterbatch.
ECM is an excellent strategic fit for A. Schulman as it brings:
- Solid synergies expected when combined with the Company’s current color, masterbatch and engineered plastics businesses
- Complementary capabilities in growing markets such as personal care and cosmetics
- ECM Plastics allows A. Schulman to gain U.S. entry into new compounding resins such as ABS, polycarbonates, polyurethanes and fluoropolymers
- A robust technical organization focused on product development
In another move, A. Schulman announced the sale of its Bellevue, Ohio facility to Mitsubishi Chemical Performance Polymers, Inc. The sale will allow the Company to continue its U.S. focus on higher-value technical products in keeping with its global strategy.
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A number of the matters discussed on this site that are not historical or current facts deal with potential future circumstances and developments and may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by the fact that they do not relate strictly to historic or current facts and relate to future events and expectations. Forward-looking statements contain such words as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. Forward-looking statements are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which management is unable to predict or control, that may cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements, and that could adversely affect the Company's future financial performance, include, but are not limited to, the following:
- worldwide and regional economic, business and political conditions, including continuing economic uncertainties in some or all of the Company's major product markets or countries where the Company has operations;
- the effectiveness of the Company's efforts to improve operating margins through sales growth, price increases, productivity gains, and improved purchasing techniques;
- competitive factors, including intense price competition;
- fluctuations in the value of currencies in major areas where the Company operates;
- volatility of prices and availability of the supply of energy and raw materials that are critical to the manufacture of the Company's products, particularly plastic resins derived from oil and natural gas;
- changes in customer demand and requirements;
- effectiveness of the Company to achieve the level of cost savings, productivity improvements, growth and other benefits anticipated from acquisitions, joint ventures and restructuring initiatives;
- escalation in the cost of providing employee health care;
- uncertainties regarding the resolution of pending and future litigation and other claims;
- the performance of the global automotive market; and
- further adverse changes in economic or industry conditions, including global supply and demand conditions and prices for products.
The risks and uncertainties identified above are not the only risks the Company faces. Additional risk factors that could affect the Company's performance are set forth in the Company's most recent Annual Report on Form 10-K. In addition, risks and uncertainties not presently known to the Company or that it believes to be immaterial also may adversely affect the Company. Should any known or unknown risks or uncertainties develop into actual events, or underlying assumptions prove inaccurate, these developments could have material adverse effects on the Company's business, financial condition and results of operations.
