FAQs

  1. Why is A. Schulman acquiring McCann Color? A. Schulman’s strategic objectives include being a leading global manufacturer in both masterbatch and rotomolding, as well as a leading global niche player in engineered plastics. The McCann Color acquisition advances our position in one of these key areas, the North American masterbatch market. McCann Color has a high-quality, custom color operation with the flexibility and efficiency to advance growth in our target markets.
  2. Who is McCann Color? McCann Color provides specially formulated color concentrates to match precise customer specifications. Other products and services include UV absorbers, dry color, toll compounding and blending, and flame retardant compounds. Its products are used in end markets such as packaging, lawn and garden, furniture, consumer products and appliances. McCann Color serves customers from its state-of-the-art, 48,000-square-foot, expandable North Canton facility.
  3. What is the strategic fit between A. Schulman and McCann Color? McCann Color is a perfect fit with our strategy to be a leading global manufacturer in the masterbatch business, and specifically, to advance the profitable growth of our North American color operations. We are extremely selective about the acquisitions we make, and McCann Color meets our criteria of providing growth opportunities for our business, generating maximum return on invested capital and creating additional shareholder value.
  4. What significance does McCann Color’s expertise in color hold for A. Schulman? McCann Color’s facility in North Canton was built in 1998 exclusively to manufacture color concentrates. This strategic move allows us to gain a high-quality, custom color operation that has the capacity, flexibility and efficiency to advance our growth in our targeted markets and reduces A. Schulman’s dependence on the automotive market. McCann Color’s operations will complement our other North American masterbatch facilities in Akron and San Luis Potosi.
  5. What does this mean for the customers of both companies? The two companies believe this transaction will bring significant value and opportunity to the customers of the combined business as a result of:
    • A high-quality, custom color operation with the flexibility and efficiency to grow
    • Technical expertise to allow A. Schulman to continually develop innovative solutions that provide the most accurate color match to satisfy customers’ specifications
    • A state-of-the-art facility built exclusively to manufacture color concentrates
  6. Is A. Schulman considering other acquisitions? The improvements we’ve made to our operations and balance sheet during the past two years have strengthened our financial position and allowed us to invest in strategic acquisitions. We’ll continue to be selective in seeking acquisitions that will provide the highest impact for the business, generate maximum return on invested capital and create additional shareholder value, and, most importantly, support our Company’s strategic objectives.
  7. How will this transaction impact the geographic mix of A. Schulman’s business? McCann Color’s color facility in North Canton is largely complementary to A. Schulman’s existing operations and will greatly expand A. Schulman’s ability to serve customers in the North American masterbatch market.
  8. What steps remain before the transaction can be finalized? What is your time frame for closing the deal? The transaction closed on March 1, 2010. Also, the Company decided on March 1, 2010 to close its Polybatch Color Center operations at Sharon Center, Ohio, and the Company will consolidate production to the McCann Color facility in North Canton.
  9. What is the total cost of this transaction? Under the terms of the agreement, A. Schulman will pay less than $10 million in cash.
  10. How will you integrate McCann Color into Schulman? We expect to integrate McCann Color’s operations seamlessly and quickly, as they are highly complementary to A. Schulman’s other masterbatch operations. The acquisition integration and consolidation of Polybatch Color Center operations are expected to be completed by the end of the Company’s current fiscal year, August 31, 2010.

About A. Schulman, Inc.

Headquartered in Akron, Ohio, A. Schulman is a leading international supplier of high-performance plastic compounds and resins. These materials are used in a variety of consumer, industrial, automotive and packaging applications. The Company employs about 2,000 people and has 16 manufacturing facilities in North America, Europe and Asia. Revenues for the fiscal year ended August 31, 2009, were $1.3 billion. Additional information about A. Schulman can be found at www.aschulman.com.