Akron, Ohio,-- A. Schulman, Inc. (Nasdaq: SHLM) has purchased McCann Color, Inc., a producer of high-quality color concentrates, based in North Canton, Ohio, for less than $10 million in cash.
McCann Color provides specially formulated color concentrates to match precise customer specifications. Other products and services include UV absorbers, dry color, toll compounding and blending, and flame retardant compounds. Its products are used in end markets such as packaging, lawn and garden, furniture, consumer products and appliances. McCann Color serves customers from its state-of-the-art, 48,000-square-foot, expandable North Canton facility, which was built in 1998 exclusively to manufacture color concentrates. The facility will complement A. Schulman's existing masterbatch manufacturing and product development facilities in Akron, Ohio, and San Luis Potosi, Mexico.
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"McCann Color is a perfect fit with our strategy to be a global manufacturer in the masterbatch business and, specifically, to advance the profitable growth of our North American color operations," said Joseph M. Gingo, Chairman, President and Chief Executive Officer of A. Schulman. "This strategic move allows us to gain a high-quality, custom color operation that has the capacity, flexibility and efficiency to advance our growth in our targeted markets and reduce our dependence on the automotive market."
The Company will close the Company's Polybatch Color Center located in Sharon Center, Ohio and consolidate production to the McCann facility in North Canton. The consolidation and the acquisition integration are expected to be completed by the end of the Company's current fiscal year, August 31, 2010. Including the acquisition and the Sharon Center restructuring, A. Schulman expects to show an annual operating income improvement of $2 million to $3 million, of which the full effect will be realized in fiscal 2011.
Headquartered in Akron, Ohio, A. Schulman is an international supplier of high-performance plastic compounds and resins. These materials are used in a variety of consumer, industrial, automotive and packaging applications. The Company employs about 2,000 people and has 16 manufacturing facilities in North America, Europe and Asia. Revenues for the fiscal year ended August 31, 2009, were $1.3 billion. Additional information about A. Schulman can be found at www.aschulman.com.
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