A. Schulman buys Australia's Compco, 10th acquisition in 4 years

By Frank Esposito
Senior Staff Reporter

Published: September 2, 2014 11:13 am ET
Updated: September 5, 2014 8:05 am ET

Image By: A. Schulman Inc. Joseph Gingo

Related to this story

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

UPDATED — Materials firm A. Schulman Inc.’s buying spree has reached double digits.

The Fairlawn, Ohio-based company on Sept. 2 announced its 10th acquisition in four years, buying Australian compounder and concentrate maker Compco Pty. Ltd. for $6.7 million in cash.

Melbourne-based Compco makes compounds and concentrates, as well as cross-linked high density polyethylene. Key markets for the firm include packaging, wire and cable, and pipe. Compco posted sales of almost $15 million in the year ended June 30.

Compco employs about 25 and operates a pair of masterbatch concentrate production lines and several smaller color compounding lines. Most of the firm’s products are based on PE. Schulman is buying Compco from Bill McMahon, who founded the firm in 1984 as International Polymers. McMahon now has a five-year contract to remain with the company.

Schulman — a leading compounder and concentrate maker both in North America and Europe — had been supplying the Australian market from locations in Indonesia and Malaysia, a company spokeswoman said. The firm will continue to do so for some products, she added, but now will also be able to serve the local market from within Australia.

It’s the first deal for Schulman since June, when it paid $91 million in cash for most of the specialty plastics business of Ferro Corp. Schulman now has spent almost $530 million on its string of purchases.

“Although it’s relatively small compared with our entire organization, the benefits of Compco's industry-leading technology will better position our business in the region and can be leveraged throughout our global footprint,” Schulman Chairman, President and CEO Joseph Gingo said in a Sept. 2 news release.

Bernard Rzepka, executive vice president and chief operating officer, added in the release that 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 region.”

Rzepka also said in the release that the Compco deal marks Schulman’s first entry into the pipe and wire and cable markets, and that the firm “remains committed to growing both organically and through acquisitions in the strategically important [Asia Pacific] region.”

Gingo will retire as Schulman’s president and CEO on Dec. 31. Rzepka will replace him in those roles on Jan. 1. In the first nine months of its 2014 fiscal year — a period that ended May 31 — Schulman posted sales of $1.82 billion, up 14 percent vs. the same stretch in 2013. The firm’s profit also soared 40 percent to $41.6 million in the same comparison.

On Wall Street, Schulman’s per-share stock price started 2014 just above $34, but was near $39 in late trading Sept. 4 for an increase of about 15 percent.


Comments

A. Schulman buys Australia's Compco, 10th acquisition in 4 years

By Frank Esposito
Senior Staff Reporter

Published: September 2, 2014 11:13 am ET
Updated: September 5, 2014 8:05 am ET

Post Your Comments


Back to story


More stories

Image

PolyOne launches Geon BIO PVC using soy-based materials

April 24, 2015 11:48 am ET

More than a decade of research is paying off for Battelle Memorial Institute in the form of Geon BIO PVC compounds from PolyOne Corp.    More

Image

Study suggests infants at lower risk from BPA exposure than expected

April 23, 2015 4:58 pm ET

A new study shows that newborn babies may have less risk from bisphenol A exposure than originally thought.    More

Image

Braskem and Odebrecht reconsidering West Virginia plastics project

April 23, 2015 2:54 pm ET

Brazilian firms Braskem and Odebrecht have confirmed that they are re-evaluating Project Ascent, the major plastics and petrochemicals project they...    More

Image

DuPont center in India gets LEED Certification

April 23, 2015 1:07 pm ET

DuPont Co.'s Knowledge Center in Hyderabad, India, was awarded LEED certification by the U.S. Green Building Council.    More

Image

SiVance opens new R&D lab

April 23, 2015 12:07 pm ET

Milliken & Co. unit SiVance LLC has opened a new research and development lab for silicone and silane technologies in Gainesville, Fla.    More

Market Reports

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

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Plastics Caps & Closures Market Report

The annual recap of top trends and future outlook for the plastics caps & closures market features interviews with industry thought leaders and Bill Wood’s economic forecast of trends in growing end markets. You will also gain insight on trends in caps design, materials, machinery, molds & tooling and reviews of mergers & acquisitions.

Learn more

Upcoming Plastics News Events

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

September 15, 2015 - September 17, 2015Plastics Caps & Closures - September 2015

More Events