A Texas-style shootout has ended in Houston, with investment group Travis Street Partners LLC gaining control of plastics compounder ICO Inc.
ICO announced June 7 that its top management team of Al Pacholder and his wife Sylvia are resigning. They were replaced by Travis Street's Timothy Gollin and Christopher O'Sullivan. Gollin and O'Sullivan also will join ICO's board of directors, along with John Williamson, another Travis Street investor. The Pacholders will receive a termination package worth more than $10 million, according to a company news release. Both ICO and Travis Street are based in Houston.
The announcement culminates a four-month battle for control of ICO, which employs 2,200 in the United States, Europe and Southeast Asia and posted sales of $325 million last year. ICO's primary businesses are grinding, toll compounding and proprietary compounding done through its Bayshore Industrial and Wedco units.
Travis Street and ICO management had dueled through a series of inflammatory news releases in which Travis Street criticized ICO management for poor performance. ICO management in turn accused Travis Street of ``an ongoing campaign of false information.''
By early April, Travis Street had gained control of 7 percent of ICO stock. They last made an offer April 3 to acquire ICO for $2.65 per share, about 80 cents more than what the stock was trading for that day.
The June 7 release does not elaborate on new management's plans for ICO. Gollin previously had said if Travis Street gained control of ICO, it would work to improve the firm for three to five years and then sell it.