A. Schulman buys Prime Colorants

By Frank Esposito
Senior Staff Reporter

Published: January 7, 2014 5:34 pm ET
Updated: January 7, 2014 5:37 pm ET

Image By: Plastics News Joseph Gingo

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers
Companies & Associations A. Schulman Inc.

The acquisitions keep a-comin’ for materials firm A. Schulman Inc.

Officials with Fairlawn, Ohio-based Schulman announced on Jan. 7 that the firm had paid $15.1 million to acquire Prime Colorants Inc., a maker of custom color and additive concentrates in Franklin, Tenn. The deal is Schulman’s ninth acquisition in less than five years.

“This latest acquisition is part of our ongoing strategy to grow our custom color capabilities in the United States, as well as further transform our U.S. operations from commodity products to a business focused on niche products and services,” Chairman, President and CEO Joseph Gingo said in a news release.

Color products “remain an area of opportunity for [Schulman] in the U.S.,” he added. “The acquisition of Prime will enable us to serve customers better by offering color expertise in an area of the country where we were not previously located.”

Prime employs about 50 at a 60,000-square-foot plant in Franklin. The firm had annual sales of about $12 million in 2013, primarily into the automotive and building and construction markets. In addition to pelletized and powder color materials, Prime will provide Schulman with an entry into the liquid color market, officials said.

Schulman is buying Prime from owner Endre Zongor. Zongor co-founded Prime in 1976 with Ed Honicker. He purchased Honicker's share of the firm in 2006.

The two firms have worked together in the past, with Prime doing toll production of some color concentrate products for Schulman.

In 2011, Prime spent more than $1 million to install three new extrusion lines. The lines increased the firm’s annual production capacity by more than 2.5 million pounds. The investment gave Prime six commercial lines, as well as one lab-scale line.

The firm also installed three injection presses for color-matching work in 2011 and added a new mixing line in 2012.

Schulman most recently bought British compounder and resin distributor Perrite Group for $52 million in September. Earlier in 2013, Schulman had purchased Network Polymers Inc. — a compounder/distributor in Akron, Ohio — for about $50 million.

Schulman posted sales of more than $585 million in the first quarter of its 2014 fiscal year, ended Nov. 30. That’s a jump of 10 percent vs. its first quarter in fiscal 2013. The firm’s first-quarter profit also increased almost 26 percent to $15.3 million.

In fiscal 2013, Schulman posted sales of just over $2.1 billion, up 3 percent vs. fiscal 2012. On Wall Street, Schulman’s per-share stock price was under $26 in late June, but had improved to $35.80 in early trading Jan. 7.

 


Comments

A. Schulman buys Prime Colorants

By Frank Esposito
Senior Staff Reporter

Published: January 7, 2014 5:34 pm ET
Updated: January 7, 2014 5:37 pm ET

Post Your Comments


Back to story


More stories

Image

Sabic: Rapid demand growth led to Ultem shortage

December 18, 2014 12:06 pm ET

Sabic Innovative Plastics has been increasing production capacity for its Ultem polyetherimide but it still got caught short by increasing demand for ...    More

Image

Amcor buys Chinese flexible packaging plant

December 18, 2014 1:47 pm ET

Australian-based global packaging company Amcor Ltd. is buying a Chinese flexible packaging business for 211 million RMB (US$31.4 million).    More

Image

Indian auto parts maker set to buy assets in Germany, Mexico

December 18, 2014 10:35 am ET

Indian auto parts maker Samvardhana Motherson Gropup is buying the assets of insolvent German plastics car parts producer Scherer & Trier (S&T).    More

Image

Sweden's Indutrade buys Belgian packaging firm Verbeek

December 18, 2014 9:42 am ET

Sweden's Indutrade AB has purchased all the shares in Belgium's Verbeeck Packaging Group.    More

Image

Röchling buys two UK firms

December 18, 2014 9:24 am ET

Germany's Röchling Engineering Plastics SE & Co. KG has expanded its presence in the high-performance plastics market by acquiring two British firms &...    More

Market Reports

Flexible Packaging Trends in North America

Our latest RESEARCH report examines trends in FLEXIBLE PACKAGING impacting the North American market including a review of economic conditions, key drivers of growth, materials pricing, M&A activity, sustainability challenges and the outlook for 2015.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Plastics in Mexico - State of the Industry Report

This report analyzes the $20 billion plastics industry in Mexico including sales of machinery & equipment, resins and finished products.

Our analysts provide insight on business trends, foreign investment, top end markets and plastics processing activity. The report also provides important data on exports, production, employment and value of plastics products manufactured.

Learn more

Upcoming Plastics News Events

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

October 27, 2015 - October 29, 2015Plastics Financial Summit - New York - 2015

More Events