MOSCOW (MRC) -- A. Schulman, Inc. has announced that it has purchased the Perrite Group, a thermoplastics manufacturing business with operations in Malaysia, the United Kingdom and France, for approximately USD52 million, according to the company's statement.
Perrite was part of the Vita Group portfolio of companies.
The acquisition is expected to increase revenues in A. Schulman's Asia Pacific (APAC) segment by 35% and will double the size of the company's existing Engineered Plastics business in the region. It is expected to deliver approximately USD2 million to USD3 million in annual synergies, including initial savings in procurement followed by more significant savings in the area of operational efficiencies.
"Expansion of our Custom Performance Colors and Engineered Plastics businesses in APAC is a key component of our growth strategy, and the addition of Perrite's manufacturing facility in Malaysia will enhance our ability to serve key customers in the region as well as globally," said Joseph M. Gingo, Chairman, President and Chief Executive Officer, A. Schulman. "It also provides an attractive opportunity to leverage our broader portfolio of products through our successful color and niche engineered plastics businesses in EMEA and the Americas."
Gingo continued, "Perrite holds leading positions in attractive target markets such as electronics, appliance and niche automotive; offers well-established and respected brands; brings a highly experienced technical team; and has a strong track record of profitable growth. The acquisition will allow us to strengthen our European niche Engineered Plastics business with the addition of new customers, as well as move into adjacent markets with Perrite's highly profitable insulation materials for the sub-sea flexible oil pipe market, which are manufactured in the United Kingdom."
Perrite has manufactured and distributed thermoplastic compounds for the electrical, automotive and industrial markets for more than 35 years, offering a broad portfolio of standard and custom compounded polymer products. Perrite's product lines include the high-performance Ronfalin ABS brand and prime-quality polyamide Vitamide range. Other key brands include Percom polypropylene, Perlex polycarbonate, Styralin polystyrene and Pertal POM. Perrite employs approximately 220 people and recorded revenues of USD140 million in fiscal 2012.
As MRC wrote earlier, last summer, A. Schulman Inc. (ASI) inked a definitive agreement to acquire ECM Plastics, a privately owned plastics compounder located in Worcester, Mass., for USD36.5 million in a move to enter into new compounding resins such as ABS, polycarbonates, polyurethanes and fluoropolymers.
A. Schulman, Inc. is a leading international supplier of high-performance plastic compounds and resins headquartered in Akron, Ohio. The company's customers span a wide range of markets such as packaging, mobility, building & construction, electronics & electrical, agriculture, personal care & hygiene, sports, leisure & home, custom services and others. The company employs approximately 3,300 people and has 34 manufacturing facilities globally. A. Schulman reported net sales of USD2.1 billion for the fiscal year ended August 31, 2012.