Plastics resin, compound, and materials manufacturer A. Schulman Inc. seems in no mood to end its acquisition spree any time soon. The company’s officials recently announced that it has signed a USD 15.1 million acquisition deal with Prime Colorants, Inc. a Franklin, Tennessee-based company that is engaged in the manufacture of custom colors and concentrated additives. This is the ninth acquisition that Schulman has made in a span on five years.
The president and CEO of Schulman, Joseph Gingo said that the company made this strategic acquisition as part of its plans to expand custom color capabilities in the American market. At the same time, the company hopes to eventually steer its business towards niche services and products from its current commodity products offerings. Simultaneously, such strategic acquisitions will also play a pivotal role in helping the company expand its geographical footprint.
Prime Colorants, that employs around 50 people at its Franklin plant, recorded annual sales of approximately USD 12 million last year. Most of the company’s business is driven by the construction and automotive markets. Founded in 1976, the company’s product lines primarily comprise powdered and pelletized color materials in addition to liquid colors.
Prime had upgraded its facilities by installing new extrusion machinery in three new lines and three new injection presses in 2011 followed by the installation of a brand new mixing line in 2012. The company’s USD 1 million investment in this project and was able to expand its yearly production capacity by over 2.5 million pounds.
Schulman, as part of its acquisition strategy, had recently acquired the British firm Perrite Group in a USD 52 million deal.