A. Schulman Inc., a supplier of high-performance plastic compounds and resins, has acquired Melbourne, Australia-based plastic compound maker Compco Pty. Ltd. for US$6.7 million in cash.
The purchase is Akron, Ohio-based Schulman’s 10th acquisition in the last four years.
“Although it is relatively small compared with our entire organisation, the benefits of Compco's industry-leading technology will better position our business in the region and can be leveraged throughout our global footprint," Joseph M Gingo, Schulman’s chairman, president and CEO, said in a statement.
Compco makes plastic compounds and products including cross-linked high density polyethylene, masterbatches and custom performance colors. Key markets include packaging, wire and cable, and pipe, Schulman said.
Compco recorded revenues of nearly US$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, Schulman’s executive vice president and COO. "The acquisition expands the capabilities of our APAC operations and marks our first entry into the growing pipe and highly regulated wire & cable markets. This move is a positive next step as we remain committed to growing both organically and through acquisitions in the strategically important APAC region."