Business News
A. Schulman Agrees to Purchase Brazil-Based Masterbatch and Engineered Plastics Producer
Tuesday 19. October 2010 - - Acquisition of Mash Compostos Plasticos will expand A. Schulman's presence in the growing Brazilian market - Brazil represents a key market in A. Schulman's overall growth strategy
A. Schulman, Inc. (Nasdaq: SHLM) announced today that it has agreed to purchase Mash Compostos Plasticos (“Mash”), a masterbatch additive producer and engineered plastics compounder based in Sao Paulo, Brazil. The transaction is expected to close on November 3, 2010, pending customary closing procedures.
“Brazil is a highly attractive market for A. Schulman and is very important to our growth strategy,” said Joseph M. Gingo, Chairman, President and Chief Executive Officer of A. Schulman. “It is a large, diversified market with strong macroeconomic fundamentals. The Brazilian plastics industry holds significant growth potential because per-capita consumption of plastic is still much lower than in other countries. With this acquisition, and with our April 30, 2010 acquisition of ICO, Inc., which included two facilities in Brazil, we are aggressively expanding our presence in that market and enhancing our ability to serve customers.”
Gustavo Perez, General Manager and Chief Operating Officer of the Americas for A. Schulman, stated, “For the first time ever in Brazil, we will have the ability to grow our masterbatch and engineered plastics platforms. With Mash’s state-of-the-art technology combined with A. Schulman’s core competencies in serving these markets, we will produce specialized additives and plastic materials to meet growing demand in this region. We have been impressed with Mash’s experienced management team, excellent operations and fundamental market presence.”
Sergio Dulcini, Executive Director for Mash Compostos Plasticos, stated, “We are very enthusiastic about both the opportunity to offer A. Schulman’s products and technologies in South America, and to produce them locally in our plant in Sao Paulo.”
Target synergies from the Mash acquisition are expected to result from improving working capital management and leveraging A. Schulman’s global purchasing power.