A Schulman Inc. to acquire most of Ferro Corp Specialty Plastics business for US$91 mln

05-Jun-14

Less than a year after ending its effort to acquire Ferro Corp., A. Schulman Inc. is acquiring most of Ferro's Specialty Plastics business for US$91 mln in cash. The deal with Schulman includes four U.S. plants and a plant in Spain- in Stryker, Ohio; Evansville and Plymouth, Ind.; Carpentersville, Ill., and Castellon, Spain. Those locations make custom engineered plastic compounds, colorants and liquid coatings. The deal is scheduled to close in Q3-2014. Ferro expects to generate cash proceeds, net of cash taxes and fees, of about US$87 mln from the sale, which it plans to use to reduce debt. Businesses included in the sale had sales of US$154 mln in 2013. The Specialty Plastics business includes Ferro’s Advanced Polymer Alloys unit, which produces melt-processible elastomers for extrusion and injection molding, and thermoplastic elastomers for general purpose and over molding. The acquisition does not include Ferro's polymer additive business, for which Ferro is looking for a buyer. The deal does not include plants operated by Mayfield Heights, Ohio-based Ferro in Edison, N.J., and Carabobo, Venezuela. Ferro said it has retained KeyBanc Capital Markets to help find a buyer for the polymer additives business. Schulman has made nine acquisitions and formed three joint ventures in the last four years. “We continue to execute our aggressive growth strategy, driven by organic growth and acquisitions,” Gingo said.