A. Schulman, Inc. entered into a definitive agreement to purchase Elian SAS, a French portfolio company of British Vita plc, for approximately euro 48 million or $63 million in cash based on current exchange rates. The transaction with Elian, a leading producer of highly specialized color masterbatch products, is anticipated to close in early February 2012. The move is expected to generate approximately $2.5 million of annual run rate synergies to be realized by the end of fiscal 2013.
Elian provides specialty formulated color concentrates to end markets such as healthcare, cosmetics, packaging, pipes and tubing and personal hygiene products that require demanding customer specifications. The company offers superior quality, technology and responsiveness to its diversified customer base.
"I'm pleased that we have reached an agreement to purchase Elian which is an excellent strategic fit as we continue to provide highly technical and differentiated solutions to our customers," said Joseph M. Gingo, chairman, president and chief executive officer of A. Schulman. "The acquisition of Elian will move us into the number-three position in France's color masterbatch market. It also will allow us to significantly improve our product mix in the EMEA region by leveraging our full portfolio of masterbatch products with a wider customer base. 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."