"This latest acquisition is part of our ongoing strategy to grow our custom color capabilities in the United States, as well as further transform our U.S. operations from commodity products to a business focused on niche products and services. Color remains an area of opportunity for us in the United States, and the acquisition of Prime will enable us to serve customers better by offering color expertise in an area of the country where we were not previously located," said Joseph Gingo, chairman, president and CEO of A. Schulman, in a news release.
"Additionally, this added capacity will complement our recent acquisition of the Perrite Group which brought us additional color capabilities in Malaysia, as well as our acquisition of Network Polymers which added to our niche business in the United States," he said.
In 2013, the company purchased the Perrite Group, a thermoplastics manufacturing business with operations in Malaysia, the UK and France, for approximately $52 million. Perrite was part of the Vita Group portfolio of companies. At the time, the company said the acquisition is expected to increase revenues in A. Schulman's Asia Pacific (APAC) segment by 35% and will double the size of the company's existing engineered plastics business in the region.
For 38 years, Prime has provided pelletized color concentrates and dry powder color expertise to customers in the automotive and building and construction markets. Prime also provides an entry point for A. Schulman in the liquid color market. Prime employs approximately 50 people and expects revenues in calendar 2013 to be approximately $12 million.
Gingo added, "Our strong balance sheet and solid cash flow generation continue to position the company well to pursue its acquisition strategy. Our goal is to build on our leading position in core markets and promote sustainable and profitable growth. We will remain aggressive in pursuing this strategy as well as the many opportunities we are seeing globally for bolt-on acquisitions."