A. Schulman Agrees to Purchase Brazil-Based Masterbatch and Engineered Plastics Producer
Share:
o Acquisition of Mash Compostos Plasticos will expand A. Schulman's presence in the growing Brazilian market
o Brazil represents a key market in A. Schulman's overall growth strategy
AKRON, Ohio, Oct. 18 - A. Schulman, Inc. (Nasdaq: SHLM) announced today that it has agreed to purchase Mash Compostos Plasticos ("Mash"), a masterbatch additive producer and engineered plastics compounder based in Sao Paulo, Brazil. The transaction is expected to close on November 3, 2010, pending customary closing procedures.
"Brazil is a highly attractive market for A. Schulman and is very important to our growth strategy," said Joseph M. Gingo, Chairman, President and Chief Executive Officer of A. Schulman. "It is a large, diversified market with strong macroeconomic fundamentals. The Brazilian plastics industry holds significant growth potential because per-capita consumption of plastic is still much lower than in other countries. With this acquisition, and with our April 30, 2010 acquisition of ICO, Inc., which included two facilities in Brazil, we are aggressively expanding our presence in that market and enhancing our ability to serve customers."
Gustavo Perez, General Manager and Chief Operating Officer of the Americas for A. Schulman, stated, "For the first time ever in Brazil, we will have the ability to grow our masterbatch and engineered plastics platforms. With Mash's state-of-the-art technology combined with A. Schulman's core competencies in serving these markets, we will produce specialized additives and plastic materials to meet growing demand in this region. We have been impressed with Mash's experienced management team, excellent operations and fundamental market presence."
Sergio Dulcini, Executive Director for Mash Compostos Plasticos, stated, "We are very enthusiastic about both the opportunity to offer A. Schulman's products and technologies in South America, and to produce them locally in our plant in Sao Paulo."
Target synergies from the Mash acquisition are expected to result from improving working capital management and leveraging A. Schulman's global purchasing power.
About A. Schulman, Inc.
Headquartered in Akron, Ohio, A. Schulman is a leading international supplier of high-performance plastic compounds and resins. These materials are used in a variety of consumer, industrial, automotive and packaging applications. The Company employs about 2,900 people and has 36 manufacturing facilities in North America, South America, Europe and Asia. On April 30, 2010, the Company completed its acquisition of ICO, Inc., a global manufacturer of specialty resins and concentrates for rotomolding and a provider of specialty polymer services. A. Schulman reported revenues of $1.3 billion for the fiscal year ended August 31, 2009, and ICO reported revenues of $300 million for the fiscal year ended September 30, 2009. Additional information about A. Schulman can be found at www.aschulman.com.
About Mash Compostos Plasticos
Mash Compostos Plasticos, based in Sao Paulo, Brazil, produces technical and color compounds and masterbatches in a variety of resins. The company was certified by ISO 9001:2000 and began operations in 2004, and its technologically advanced plant in Sao Paulo was re-certified in 2009 to ISO 9001:2008. Product and service categories include MasterMASH additive concentrates, fillers and glass fibers; MASHBlend blends of resins or resins with additives; MASHColor color concentrates; MASHComp base resins compounded with additives, fillers and glass; and MASHPlus tolling services. Additional information about Mash Compostos Plasticos can be found at mashplasticos.com.br.
SOURCE A. Schulman, Inc.
CONTACT:
Jennifer K. Beeman,
Director of Corporate Communications & Investor Relations,
A. Schulman, Inc.,
+1-330-668-7346,
Jennifer_Beeman@us.aschulman.com
Web Site: www.aschulman.com
