A Schulman said Monday it signed a definitive agreement to acquire ECM Plastics, a privately-owned plastics compounder located in Worcester, Massachusetts.
The deal was valued at $36.5 million, the company said.
ECM generates approximately $40 million in annual sales. After expected synergies, operating margins are projected to exceed 10%, with operating profit per pound to surpass 15 cents, Schulman said.
The transaction is expected to close in early September, pending the completion of closing requirements.
With ECMs expertise in custom color matching, higher-value compounding and specialty additive formulations, we believe they are an excellent strategic fit as we continue to focus on niche products, said Joseph M. Gingo, CEO of Schulman.
As we have undertaken this shift to higher-value products in engineered plastics, specialized color and masterbatch, we have exited our legacy plants that were dedicated primarily to serving the volume automotive market, he added.
Gustavo Perez, general manager and chief operating officer of the Americas for A. Schulman, said: The acquisition of ECM will expand our capabilities in a number of markets, especially personal care and cosmetics, where ECM has a strong presence.
As part of its transition, Schulman also announced the sale of its vinyl chloride compounding facility in Bellevue, Ohio, to Japans Mitsubishi Chemical.
Financial terms of that transaction were not disclosed.