ICO Announces Agreement With Micro Pellets Australia Pty. Ltd.
12 September 2009 - 4:43AM
PR Newswire (US)
HOUSTON, Sept. 11 /PRNewswire-FirstCall/ -- ICO, Inc.
(NASDAQ:ICOC), global producer of custom polymer powders and
plastic film concentrates, today announced an agreement, subject to
closing conditions, to acquire certain intangible assets (primarily
customer lists and formulations) and assume a production facility
lease of Micro Pellets Australia Pty. Ltd., a private company based
in Melbourne, Australia that provides products and services to the
rotational molding industry in Australia and New Zealand. The
Company will also enter into a lease for certain of Micro Pellets'
production equipment. The transaction is expected to close by
September 30, 2009. The Company plans to relocate its main
Australian plant and operations to the leased production
facilities. The cost of the intangible assets to be acquired is not
significant. (Logo:
http://www.newscom.com/cgi-bin/prnh/20030509/ICOCLOGO) Derek
Bristow, President of ICO's Asia Pacific Division, stated,
"Australia is a strong market for the rotational molding business,
notwithstanding the recent volatility. We believe that the region
will be a prosperous market for our products and services for years
to come. The Micro Pellets plant, which is much larger than our
main Australian plant, will have ample space and capacity to serve
the rotational molding market and to expand ICO's product
offerings, including Bayshore masterbatch from Malaysia for the
film and packaging markets." John Knapp, the Company's Chief
Executive Officer and President, added: "The transaction is
expected to solidify ICO's position in the rotational molding
industry in Australia. We believe that the move to the Micro
Pellets facility will make ICO the most efficient and effective
rotational molding powder producer in the region, and we are very
excited about the Company's growth opportunities resulting from the
move to the new facility. We expect that the additional volume to
our current business will increase our operating leverage and
profitability in Australia." For the nine months ended June 30,
2009, the Company's Australian business, excluding the non-cash
goodwill impairment charge taken in the second quarter of fiscal
year 2009, has lost $1.3 million. The transaction could add
approximately 5,000 metric tons per year of additional business
volumes and $11.0 million of revenues per year, and is expected to
improve the profitability of the business. About ICO, Inc. With 20
locations in 9 countries, ICO produces custom polymer powders for
rotational molding and other polymer related businesses, such as
the textile, metal coating and masterbatch markets. ICO remains an
industry leader in size reduction, compounding and other tolling
services for plastic and non-plastic materials. ICO's Bayshore
Industrial subsidiary produces specialty compounds, concentrates
and additives primarily for the plastic film industry. Additional
information about ICO, Inc. can be found on the Company's website
at http://www.icopolymers.com/. Contact: CFO - Bradley T. Leuschner
at 713-351-4100. Certain matters discussed in this press release
are "forward-looking statements," involving certain risks,
uncertainties, and assumptions, intended to qualify for the safe
harbors from liability established by the Private Securities
Litigation Reform Act of 1995. The Company's statements regarding
trends in the marketplace, potential future results, and any
proposed transaction and its timing and effects are examples of
such forward-looking statements. The following is a non-exclusive
list of risks and uncertainties, and circumstances that present
risks, that could cause the forward-looking statements to become
untrue or otherwise affect the outcome thereof: failure to close
the referenced transaction on the terms currently contemplated;
failure to integrate the combined operations referenced herein and
realize expected operating efficiencies and expanded product
offerings; restrictions imposed by the Company's outstanding
indebtedness; changes in the cost and availability of resins
(polymers) and other raw materials; changes in demand for the
Company's services and products; business cycles and other industry
conditions; general economic conditions; international risks;
operational risks; currency translation risks; the Company's lack
of asset diversification; the Company's ability to manage global
inventory, develop technology and proprietary know-how, and attract
and retain key personnel; as well as other factors detailed in the
Company's form 10-K for the fiscal year ended September 30, 2008
and its other filings with the Securities and Exchange Commission.
Should one or more of such risks or uncertainties materialize, or
should underlying assumptions prove incorrect, actual results may
vary materially from those indicated. Any forward-looking
statements are made only as of the date of this press release, and
the Company undertakes no obligation to publicly update any such
forward-looking statements to reflect subsequent events or
circumstances.
http://www.newscom.com/cgi-bin/prnh/20030509/ICOCLOGO
http://photoarchive.ap.org/ DATASOURCE: ICO, Inc. CONTACT: Bradley
T. Leuschner, CFO of ICO, Inc., +1-713-351-4100 Web Site:
http://www.icopolymers.com/
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