) recently said that it is buying advanced composite products
maker Glasforms, Inc. for roughly $34 million. The acquisition
will offer the specialty polymer materials maker access to
advanced composite technology.
POLYONE CORP (POL): Free Stock Analysis
SCHULMAN(A) INC (SHLM): Free Stock Analysis
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Privately-held Glasforms makes advanced composite products for
applications across a host of industries including electrical and
telecom, energy, transportation and healthcare. The entity, which
logged revenues of more than $50 million in fiscal 2012, has
grown it sales at a compound annual growth rate of 36% since
The acquisition will help PolyOne to boost its specialty
solutions portfolio through the addition of new and adjacent
technologies and applications. The company expects the
acquisition to be accretive to its earnings this year. It also
noted that Glasforms will continue to operate from its
Birmingham, Alabama campus. Following the takeover, the entity
will be integrated into PolyOne's Specialty platform.
Cleveland, Ohio-based PolyOne is a leading provider of
specialized polymer materials, services and solutions. The
company, which has annual sales of $2.9 billion, has operations
across the globe.
PolyOne, in December 2011, acquired ColorMatrix, a highly
specialized company with a leading market position in liquid
colorants. The acquisition allowed the company to harness its
potential in the specialty business and expand globally.
Moreover, PolyOne cut a deal in October 2012 to buy plastic
products maker Spartech Corp for $393 million (including the
assumption of Spartech's debt). The deal, which expected to close
in the first quarter of 2013, is expected to be accretive to the
company's adjusted earnings in the first full year. The
acquisition will enable PolyOne to enter into new markets
including aerospace and security.
Despite a weak European economy, PolyOne expects to deliver
double-digit growth in adjusted earnings per share in
fourth-quarter 2012 on the back of its strong execution.
PolyOne currently retains a Zacks #4 Rank, which translates into
a short-term Sell rating.
A. Schulman, Inc.
), which also belongs to the specialty chemicals industry,
carries a Zacks #2 Rank (Buy).