International supplier of high-performance plastic compounds and resins, A. Schulman Inc., has announced that it has purchased the Perrite Group, a thermoplastics manufacturing business with operations in Malaysia, the United Kingdom and France, for approximately $52 million (approx. £33.3 million).
The acquisition is expected to increase revenues in A. Schulman’s Asia Pacific (APAC) segment by 35 percent and will double the size of the Company’s existing Engineered Plastics business in the region.
“Expansion of our Custom Performance Colours and Engineered Plastics businesses in APAC is a key component of our growth strategy, and the addition of Perrite’s manufacturing facility in Malaysia will enhance our ability to serve key customers in the region as well as globally,” said Joseph M. Gingo, Chairman, President and Chief Executive Officer, A. Schulman.
“It also provides an attractive opportunity to leverage our broader portfolio of products through our successful color and niche engineered plastics businesses in the Europe, Middle East, Africa (EMEA) and Americas regions.”
Gingo continued: “Perrite holds leading positions in attractive target markets such as electronics, appliance and niche automotive; offers well-established and respected brands; brings a highly experienced technical team; and has a strong track record of profitable growth. The acquisition will allow us to strengthen our European niche Engineered Plastics business with the addition of new customers, as well as move into adjacent markets with Perrite’s highly profitable insulation materials for the sub-sea flexible oil pipe market, which are manufactured in the United Kingdom.”
Perrite’s product lines include the high-performance Ronfalin ABS brand and prime-quality polyamide Vitamide range. Other key brands include Percom 1polypropylene, Perlex polycarbonate, Styralin polystyrene and Pertal POM.
Perrite employs approximately 220 people and recorded revenues of $140 million (approx. £90 million) in fiscal 2012.