A. Schulman recently 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.
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.
"Expansion of our custom performance colors 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 CEO of A. Schulman, in a news release. "It also provides an attractive opportunity to leverage our broader portfolio of products through our successful color and niche engineered plastics businesses in EMEA and the Americas."
Perrite has manufactured and distributed thermoplastic compounds for the electrical, automotive and industrial markets for more than 35 years, offering a portfolio of standard and custom compounds. Perrite's product lines include the Ronfalin ABS brand and polyamide Vitamide range. Other brands include Percom polypropylene, Perlex polycarbonate, Styralin polystyrene and Pertal POM. Perrite employs approximately 220 people and recorded revenues of $140 million in fiscal 2012.
"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," Gingo said. "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."