A. Schulman enters agreement to purchase highly specialized color masterbatch producer, Elian, French portfolio company of British Vita, for €48M in cash; deal expected to close in early February
January 30, 2012
– Strengthens global color masterbatch specialty market position
Increases capability to serve fast-growing healthcare and cosmetics markets
Annual synergies of up to $2.5 million expected
A. Schulman, Inc. (Nasdaq-GS: SHLM) announced today that it entered into a definitive agreement to purchase Elian SAS, a French portfolio company of British Vita plc, for approximately euro 48 million or $63 million in cash based on current exchange rates. Elian is a leading producer of highly specialized color masterbatch products. The transaction is expected to generate approximately $2.5 million of annual run rate synergies to be realized by the end of fiscal 2013. The transaction is anticipated to close in early February 2012.
Elian provides specialty formulated color concentrates to end markets such as healthcare, cosmetics, packaging, pipes and tubing and personal hygiene products that require demanding customer specifications. The company offers superior quality, technology and responsiveness to its diversified customer base.
"I'm pleased that we have reached an agreement to purchase Elian which is an excellent strategic fit as we continue to provide highly technical and differentiated solutions to our customers," said Joseph M. Gingo, Chairman, President and Chief Executive Officer of A. Schulman. "The acquisition of Elian will move us into the number-three position in France's color masterbatch market. It also will allow us to significantly improve our product mix in the EMEA region by leveraging our full portfolio of masterbatch products with a wider customer base. Our strategic goal is to become the leading global manufacturer of masterbatch and we will continue to seek out global opportunistic acquisitions that will diversify our end markets and provide profitable long-term growth to our shareholders."
"Under an experienced management team, Elian has outperformed the challenging French economy by specializing in higher-margin products with a keen focus on quality and innovation," said Bernard Rzepka, General Manager and Chief Operating Officer of A. Schulman, Europe, Middle East, Africa. "We are excited to add their expertise to our team and to expand our product and service capabilities for our growing customer base in the region. Elian will help our continued efforts to penetrate faster into attractive market segments."
Founded in 1949, Elian has approximately 100 associates and is located in France's "Plastics Valley" in Oyonnax. A. Schulman currently has European color operations in Belgium, Sweden, Poland, Hungary, United Kingdom and Italy.
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 3,000 people and has 35 manufacturing facilities globally. A. Schulman reported net sales of $2.2 billion for the fiscal year ended August 31, 2011. Additional information about A. Schulman can be found at www.aschulman.com.