FAIRLAWN, OHIO (Jan. 30, 6:15 p.m. ET) — Compounder A. Schulman Inc. is expanding in Europe and boosting its specialty color masterbatch business, buying Elian SAS from British Vita plc.
Founded in 1949, Elian has about 100 employees and is located in France's “Plastics Valley” in Oyonnax.
Fairlawn-based Schulman announced Jan. 30 that it has a definitive agreement to buy Elian for about 48 million euros, or $63 million. The deal is scheduled to close in early February.
Schulman said the deal increases its capability to serve the fast-growing healthcare and cosmetics markets. Schulman already has European color operations in Belgium, Sweden, Poland, Hungary, the United Kingdom and Italy.
“The acquisition of Elian will move us into the No. 3 position in France's color masterbatch market.,” Schulman Chairman, President and CEO Joseph Gingo said in a news release.
“Our strategic goal is to become the leading global manufacturer of masterbatch and we will continue to seek out global opportunistic acquisitions that will diversify our end markets and provide profitable long-term growth to our shareholders,” he said.
Schulman said it expects annual run-rate synergies from the acquisition of $2.5 million by the end of fiscal 2013.
Manchester, England-based Vita bought Elian for £16.9 million ($28.2 million) in cash in 1999. At the time, Elian employed 100 and recorded 1998 sales of $21.5 million, Vita reported.