Deal will expand market reach - A. Schulman
The firm also announced it has sold its vinyl chloride compounding facility in Bellevue, Ohio, to Mitsubishi Chemical Performance Polymers (MCPP).
The deal for ECM Plastics is expected to close in early September and operating margins are projected to exceed 10% after expected synergies.
Massachusetts-based ECM Plastics provides custom colour matching, specialty additive formulations and plastic compounding based on thermoplastic resins for a variety of markets.
Added expertise
Joseph M. Gingo, chairman, president and chief executive officer of A. Schulman, said: "With ECM's expertise in custom colour matching, higher-value compounding and specialty additive formulations, we believe they are an excellent strategic fit as we continue to focus on niche products.
“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.
“As we have undertaken this shift to higher-value products in engineered plastics, specialized colour and masterbatch, we have exited our legacy plants that were dedicated primarily to serving the volume automotive market."
A. Schulman supplies of plastic compounds and resins to the packaging industry.
"The highly talented teams at ECM Plastics and A. Schulman share a commitment to innovation and customer focus that is unsurpassed in our industry," said Wayne Marquis, president of ECM Plastics.
"Becoming part of A. Schulman's global organization is an exciting opportunity to extend our technology offerings to a wider range of customers and markets."
Sale of facility
The firm also announced the sale of its vinyl chloride compounding facility in Ohio, to Mitsubishi Chemical Performance Polymers, a subsidiary of Mitsubishi Chemical Corporation.
Terms of the sale were not disclosed but A. Schulman will continue its US focus on higher-value technical products, while MCPP will expand its presence in North America's vinyl chloride compounding market.
Gingo added: "In addition to the ECM acquisition, we have announced the sale of our Bellevue facility, which marks the completion of this transformation. We are pleased to have found a strong buyer in Mitsubishi Chemical Performance Polymers."
