May 29 2013
A. Schulman, Inc. announced today that it has reached an agreement in principle to purchase Network Polymers, Inc., a U.S. niche engineered plastics compounding and distribution business, for approximately $50 million, subject to completion of due diligence. The transaction is anticipated to close within the next few months.
"We have demonstrated a strong commitment at A. Schulman to grow through opportunistic and strategic acquisitions as well as organic growth. Network Polymers is an excellent fit with our ongoing strategy as we continue to enhance our niche engineered plastics business in the U.S.," said Joseph M. Gingo, Chairman, President and Chief Executive Officer, A. Schulman. "Network Polymers will provide greater penetration in key markets such as building and construction, agricultural products, and lawn and garden. It also brings strong technical expertise and a seasoned sales force that will help to leverage existing A. Schulman products and expertise to a wider customer base. In addition, the combination will expand our distribution business in the U.S."
"The highly talented teams at both Network Polymers and A. Schulman share a passion for providing custom formulations that meet the most demanding customer needs and applications," said Alan Woll, Chief Executive Officer, Network Polymers, Inc. "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."
Network Polymers is a leading single source provider of thermoplastic resins and alloys. The company offers a broad spectrum of custom resins and alloys to meet customer-specific product design and manufacturing requirements. Network Polymers is also the exclusive producer of the Centrex® ASA family of products as well as the Diamond Polymer brand of ABS, ABS/PC, ASA and ASA/PC thermoplastic products. The company operates a 72,000-square-foot manufacturing facility in Akron, Ohio, and employs approximately 70 people. It recorded revenues of $65.3 million in fiscal 2012.
Gingo added, "We continue to search for strategic acquisitions in the specialty plastics space, and while we are still interested in entering into a mutual dialogue and due diligence with Ferro Corporation, we will continue with our aggressive bolt-on acquisition strategy in our specialty plastics business as well as exploring other opportunities for transformational acquisitions. To date, we have successfully executed five acquisitions and two joint ventures in less than four years. We are encouraged by the near-term opportunities in the potential global acquisition pipeline and are actively pursuing other targets that align with our value creation strategy."
Source: http://www.aschulman.com