Plastic materials deals up in first half

By Frank Esposito
Senior Staff Reporter

Published: July 16, 2013 10:01 am ET
Updated: July 16, 2013 10:07 am ET

Related to this story

Topics Mergers & Acquisitions, Materials Suppliers
Companies & Associations A. Schulman Inc., Ferro Corp., Mitsubishi Chemical Corp.

The pace of global plastic materials deals picked up in the first half of 2013 when compared with the same six-month period in 2012.

Data from P&M Corporate Finance LLC in Southfield, Mich., shows that first-half resin, color and compounding deals totaled 32 — up 23 percent vs. 2012. Those deals made up 22 percent of the first-half total when divided by sector, trailing only injection molding (26 percent) in the P&M ranking.

Among product segments, resin and consumer were the only two categories that showed first-half 2013 growth when compared with the year-ago period, P&M officials said.

Longer-term, low-priced North American plastics feedstocks — resulting from shale gas development in the region — could make materials firms more attractive to potential buyers, according to Bill Ridenour, president of Polymer Trans¬action Advisors Inc. in Newbury, Ohio.

"Shale feedstock costs are much lower," he said.

"Those low feedstock costs might be the savior of the U.S. economy."

Plastics News covered a half-dozen materials deals in the first half of the year, including a pair of acquisitions by Tokyo-based Mitsubishi Chemical Corp. In February, Mitsubishi purchased the plastic compounds business of Tessenderlo Group of Brussels. That business includes four plants in France, Poland and China with annual sales of more than $150 million. Then in May, Mitsubishi added Comtrex LLC, a maker of PVC compounds and thermoplastic elastomers based in Warren, Mich. Comtrex employs about 40 and has annual sales of about $20 million.

In a news release, Mitsubishi officials said the Comtrex acquisition "is in line with [the group's] medium-term management plan" of increasing its manufacturing and sales into TPEs, cross-linked polymers, adhesive polymers and conductive polymers.

The resin distribution market had been quiet for a while until two deals broke the silence. On the final day of 2012, M. Holland Co. made the first acquisition in its 60-plus-year history when it bought Christler Chemical & Plastics Inc., a distributor of engineering and commodity thermoplastic resins based in Wilsonville, Ore. The acquisition gives Northbrook, Ill.-based M. Holland a presence in the Pacific Northwest and access to new customers, owner Ed Holland said.

The second recent resin distribution deal took place in February when Cheshire, Conn.-based Osterman & Co. Inc. acquired fellow distributor Quimtec LP of San Jose, Costa Rica. Quimtec distributes polyethylene and polypropylene resins throughout Central America for the Equistar unit of LyondellBasell Industries.

Meanwhile, compounder and resin distributor A. Schulman Inc. recently gave up on its attempts to buy Mayfield Heights, Ohio-based Ferro Corp., according to Schulman CEO Joe Gingo, who spoke with analysts in a July 2 conference call.

Schulman never upped its hostile bid of $563 million for Ferro, and Ferro officials remained committed throughout to pursuing their own turnaround strategy for the firm.


Comments

Plastic materials deals up in first half

By Frank Esposito
Senior Staff Reporter

Published: July 16, 2013 10:01 am ET
Updated: July 16, 2013 10:07 am ET

Post Your Comments


Back to story


More stories

Negri Bossi's new owners may 'bring significant manufacturing' to US

April 16, 2014 1:09 pm ET

Italian plastics equipment major Negri Bossi may “bring significant manufacturing of injection molding machines back to the United...    More

New Tigre, ADS JV aims to open more doors for Tigre in US

April 16, 2014 12:15 pm ET

A new joint venture between Tigre S.A. Brazil, a leading PVC pipe maker, and Advanced Drainage Systems Inc., the world's largest high-density...    More

Indorama's purchase of Sasa to give wider access to multiple markets

April 16, 2014 10:07 am ET

PET maker Indorama Ventures Public Co. Ltd. is expanding in Turkey with the acquisition of a majority of Sasa Polyester Sanayi.    More

Associated Materials Group withdraws plan for initial public offering

April 16, 2014 10:16 am ET

Associated Materials Group Inc. of Cuyahoga Falls, Ohio, a manufacturer and distributor of exterior residential building products in the United...    More

Axiall resumes operations at damaged Lake Charles PVC feedstock plant

April 15, 2014 4:41 pm ET

Axiall Corp. has resumed operations at its PVC feedstock plant that was damaged by a fire in December.
More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report provides analysis and discussions of economic and political conditions, market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as strategies being implemented by thermoformed packaging companies. In addition, there are reviews of 25 leading thermoformers in the packaging segment, assessing their growth initiatives and performance metrics over 10 years.

Learn more

Automotive Market Review and Outlook 2014 The Americas

This 75-page report features in-depth analysis of the automotive industry for the Americas. It includes discussions of market trends, legislative/regulatory activity impacting production and threats as well as design strategies being implemented by the major automakers. Detailed charts and data tables outline North American automotive production over the last five years.

Learn more

Plastics Building & Construction Market Review and Outlook 2014 with MS Excel chart data

This report provides in-depth analysis of the plastic building and construction market for North America, including discussions of trends, opportunities, threats and the latest developments in construction trends that impact plastics processors.

Learn more

Upcoming Plastics News Events

May 6, 2014 - May 8, 2014Plastics in Medical Devices 2014

May 12, 2014 - May 12, 2014Plastics News Brazil Pharma Summit

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

February 3, 2015 - February 7, 2015Plastics News Executive Forum 2015

More Events