Written on 25.06.2014 - Industry
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A. Schulman to buy a majority of the 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 USD 91 million. The purchase agreement includes four facilities located in the USA 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 31 August 2014. Excluded from the transaction are Ferro's plastics business and operations in Edison, NJ, USA, and Carabobo, Venezuela.

The Specialty Plastics assets included in the pending transaction achieved sales of USD 154 million in 2013, with approximately two-thirds of these revenues generated in the USA. 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. Its 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.