Why is A. Schulman acquiring Elian?
A. Schulman’s strategic objectives include being a leading global manufacturer in both masterbatch and specialty powders, as well as a leading global niche player in engineered plastics. The acquisition of Elian advances our global position in the highly specialized color masterbatch market and increases our capability to serve the fast-growing healthcare and cosmetics markets.
Who is Elian?
Elian is a leading producer of highly specialized color masterbatch products for a diversified group of end markets including healthcare, cosmetics, packaging, pipes and tubing and personal hygiene products. Founded in 1949, the company has approximately 100 associates and is located in France’s “Plastics Valley” in Oyonnax.
What is the strategic fit between A. Schulman and Elian?
Elian is an excellent strategic fit for A. Schulman as it brings:
- Superior product quality, technology and customer service
- Access to high-growth, diversified end markets such as healthcare, cosmetics, packaging, pipes and tubing and personal hygiene products
- The opportunity for A. Schulman to leverage the Company’s full portfolio of masterbatch products with an expanded customer base
- An experienced management team with a keen focus on quality and innovation
What synergies does A. Schulman expect to achieve with the acquisition of Elian?
A. Schulman expects the transaction will generate approximately $2.5 million of annual run rate synergies to be realized by the end of fiscal 2013.
What does this mean for the customers of both companies?
The two companies believe this transaction will bring significant value and opportunity to the customers of the combined business as a result of:
- Providing a broader range of highly technical and differentiated solutions to a wider customer base
- Specializing in value-added products with a keen focus on quality and innovation
- Expanding our product and service capabilities in the region
Is A. Schulman considering other acquisitions?
We continue to evaluate potential targets, selectively seeking acquisitions that will diversify our end markets, provide profitable long-term growth to our shareholders and support our Company’s strategic objectives.
How will this transaction impact the product mix of A. Schulman’s business?
It 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 and allowing us to penetrate faster into attractive market segments.
What is your time frame for closing the deal?
We expect the transaction to close in early February 2012.
What is the total cost of this transaction?
The cost is approximately €48 million or $63 million.
How will you integrate Elian into A. Schulman?
We expect to integrate Elian’s operations seamlessly and quickly, as they are highly complementary to A. Schulman’s other operations.
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.