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
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
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
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.