A Schulman buys Australian compounder Compco
A. Schulman has acquired Melbourne, Australia-based Compco for $6.7 million in cash, the company announced on Tuesday.
Compco is a manufacturer of a variety of plastic compounds and products including masterbatches and custom performance colors. Key markets include packaging, wire & cable and pipe.
"This is our 10th acquisition in the last four years and, although it is relatively small compared with our entire organization, the benefits of Compco's industry-leading technology will better position our business in the region and can be leveraged throughout our global footprint," said Joseph M. Gingo, CEO of A. Schulman.
Compco achieved revenues of nearly $15 million for its fiscal year ending June 30, 2014.
"Compco holds a strong position and significant growth potential in the Australian market and beyond, and its products are aligned with our strategic focus and objectives in the Asia Pacific (APAC) region," said Bernard Rzepka, chief operating officer of A. Schulman.
"The acquisition expands the capabilities of our APAC operations and marks our first entry into the growing pipe and highly regulated wire & cable markets," he added. "This move is a positive next step as we remain committed to growing both organically and through acquisitions in the strategically important APAC region."
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