Shanghai Pret Composites Co. Ltd., a Chinese company, has announced plans to acquire Wellman Plastics Recycling LLC, Johnsonville, South Carolina, in an all-cash deal valued at more than $70 million.
The purchase includes all shares of Wellman Engineering Resins and DC Foam Recycle Inc.
According to several news reports, Pret Composites valued Wellman’s assets at $73.6 million, including $14.8 million in net assets, as of Sept. 27, 2014. The company’s sales reached $162 million in 2012, climbed to $164 million in 2013 and were $124 million for the first three quarters of 2014. Net profit was $7.6 million in 2013 and $6.1 million for the first three quarters of 2014.
Pret Composites, which was founded in 1993, manufactures composite materials for the automotive industry. According to an article in The State (Columbia, South Carolina), the company acquired Wellman Plastics in an effort to secure a presence in the U.S. auto compounding market.
The company owns three subsidiaries: Shanghai Pret New Chemical Material Co. Ltd., Zhejiang Pret New Material Co. Ltd. and Chongqing Pret New Material Co. Ltd., all located in China.
Pret Composites says it has an annual capacity of 20,000 metric tons of modified plastics.
Wellman’s Engineering Resins division produces nylon, polyester and polypropylene resin products for the automotive industry made from 100-percent-postconsumer-recycled materials.