A. Schulman Completes Acquisition of ICO, Inc.
Acquisition furthers A. Schulman’s long term strategic objective to be a global leader in rotomolding and masterbatch.
The two companies believe this transaction will bring significant value and opportunity to the customers of the combined business.View the press release
"The addition of ICO will strengthen our ability to serve customers, and we expect the acquisition to generate approximately $15 million in annual synergies by fiscal 2012."Joseph Gingo
Chairman, President and Chief Executive Officer
Combination of Companies
A. Schulman has completed its acquisition of ICO, Inc., following the approval of the ICO stockholders at a special meeting on April 28, 2010. The transaction, first announced on December 2, 2009, calls for ICO stockholders to receive a total of $105 million in cash and 5.1 million shares of A. Schulman common stock. This transaction reflects the improvements A. Schulman has made to its operations and balance sheet during the past two years, which have strengthened its financial position to allow it now to invest in strategic acquisitions.
The combined operations of A. Schulman and ICO will bring significant value and opportunity to the customers of the combined business by:
- Leveraging rotomolding technology from the U.S. to the rest of the world
- Offering a wider variety of solutions including size reduction technology
- Sharing experience, knowledge and manufacturing technology
- Expanding distribution opportunities
- Expanding global reach
Certain statements in this release may constitute forward-looking statements within the meaning of the Federal securities laws. These statements can be identified by the fact that they do not relate strictly to historic or current facts. They use such words as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial performance. These forward-looking statements are based on currently available information, but are subject to a variety of uncertainties, unknown risks and other factors concerning the Company's operations and business environment, which are difficult to predict and are beyond the control of the Company. Important factors that could cause actual results to differ materially from those suggested by these forward-looking statements, and that could adversely affect the Company's future financial performance, include, but are not limited to, the following:
- Worldwide and regional economic, business and political conditions, including continuing economic uncertainties in some or all of the Company's major product markets;
- Fluctuations in the value of currencies in major areas where the Company operates, including the U.S. dollar, Euro, U.K. pound sterling, Canadian dollar, Mexican peso, Chinese yuan and Indonesian rupiah;
- Fluctuations in the prices of sources of energy or plastic resins and other raw materials;
- Changes in customer demand and requirements;
- Escalation in the cost of providing employee health care;
- The outcome of any legal claims known or unknown;
- The performance of the global auto market;
- The global financial market turbulence; and
- The global or regional economic slowdown or recession.
Additional risk factors that could affect the Company's performance are set forth in the Company's Annual Report on Form 10-K. In addition, risks and uncertainties not presently known to the Company or that it believes to be immaterial also may adversely affect the Company. Should any known or unknown risks or uncertainties develop into actual events, or underlying assumptions prove inaccurate, these developments could have material adverse effects on the Company's business, financial condition and results of operations.