A. Schulman buying polymer supplier ICO
Plastic compound and resin supplier A. Schulman Inc. has signed an agreement to pay US$191.4 million for all...
Plastic compound and resin supplier A. Schulman Inc. has signed an agreement to pay US$191.4 million for all outstanding shares of ICO Inc., which makes custom polymer powders and plastic film concentrates.
The transaction will include US$105 million in cash and 5.1 million shares of common stock.
According to A. Schulman, the acquisition – which requires approval from ICO’s shareholders – would improve its position in global markets.
A. Schulman said shareholders of ICO, based in Houston, will receive about $6.79 per share. The company also said that it would pay the cash portion of the transaction from cash on hand.
Joseph M. Gingo, chairman, president and CEO of Akron, Ohio-based A. Schulman, said the acquisition provides the company with the opportunity to significantly expand its global presence, particularly in rotomolding. “As we have communicated to our shareholders in the past, A. Schulman’s long-term strategic objectives include being a leading global manufacturer in both masterbatch and rotomolding,” he said in a news release.
ICO reported annual sales of $300 million for the year ended September 30.