defa14a
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 14A
(RULE 14a-101)
SCHEDULE 14A INFORMATION
PROXY STATEMENT PURSUANT TO SECTION 14(a) OF THE
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EXCHANGE ACT OF 1934 (Amendment
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Material Pursuant to
§240.14a-12
A. Schulman, Inc.
(Name of Registrant as Specified In
Its Charter)
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Statement, if other than the Registrant)
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A. Schulman, Inc. issued the following press release.
A. SCHULMANS NEW CEO, JOSEPH M. GINGO, UNVEILS 100 DAY PLAN TO IMPROVE PROFITABILITY AND DRIVE GROWTH
Ramius
Unwilling to Accept the Companys Attempts to Settle the Proxy
Fight
Independent Board Committee Already Established to Review Strategic Alternatives, Addressing Ramius
Stockholder Proposal
AKRON, Ohio, January 3, 2008 A. Schulman Inc. (Nasdaq: SHLM) today unveiled new CEO Joseph M.
Gingos 100-day plan aimed at dramatically improving the Companys profitability and driving future
earnings growth. The Company also addressed the status of the ongoing proxy fight with Ramius
Capital in advance of the upcoming January 10, 2008 Annual Meeting of Stockholders and reaffirmed
that it has already addressed Ramius stockholder proposal to create an independent board committee
to review all strategic alternatives.
100 Day Plan
Mr. Gingo has outlined a plan for A. Schulman, which addresses six primary areas of transformation
across the Company, specifically:
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More efficient and effective utilization of A. Schulmans North
American manufacturing facilities, including potential restructuring; |
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Enhanced focus on value-added products to drive profitable growth in
the polybatch and engineered compounds segments; |
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Re-assessment of A. Schulmans North American automotive business to
emphasize profitable areas; |
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Suspension of further capital expenditures on InvisionÒ until
marketing strategy has been refined to ensure accelerated market
adoption of this exciting new multi-layered sheet product; |
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Identification of additional efficiencies in the sales and
administrative structure of European operations; and |
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Ensuring that the best leadership team is in place to execute upon A.
Schulmans strategy. |
While an A. Schulman board member, I was an active advisor to the Company on its strategic
direction; however, in my new role as CEO, I am excited to be taking the operational reigns and
driving forward our strategy with a real sense of urgency. I was a
key member of the turn around
team of a $20 billion business and intend to quickly and effectively implement the changes necessary to drive
profitable growth, said Mr. Gingo. While the Special Committee of the Board reviews external
strategic alternatives, we will focus on ensuring that we have in place the best strategy and
infrastructure to take the Company forward, positioning A. Schulman for success under all
circumstances.
Ramius
Unwilling to Accept the Companys Attempts to Settle the Proxy Fight
A. Schulman confirmed that it has attempted to resolve the hostile proxy contest with Ramius in a
manner responsive to stockholders interests. Most recently, A. Schulman offered to have its
Nominating and Corporate Governance Committee interview and recommend the appointment of one of
Ramius two nominees to the Companys Board to serve as a director for a one-year term ending at
the next annual meeting. The Company would then have supported the re-election of that director as
an incumbent for a full three-year term at the next annual meeting, upon the anticipated retirement
of another director. This would have expanded the size of the Board to 13 directors for one year. Ramius rejected this
offer.
Ramius does not have the interests of all stockholders at heart, evidenced by the fact that they
continue to pursue a protracted and expensive proxy fight with no meaningful benefit to all
stockholders, while ignoring the substantive measures taken by the Company to enhance
profitability, improve governance and deliver stockholder value. We believe that our offer was
fair, responsive to stockholders interests and intended to ensure the independence of all
directors, said lead independent director of the Company, Will Holland.
Wholly-Independent Special Committee Already In Place and Reviewing Strategic Alternatives
On November 16, 2007, A. Schulman announced the formation of a Special Committee consisting of
Messrs. Howard R. Curd, John B. Yasinsky, Willard R. Holland, Michael A. McManus Jr., James A.
Mitarotonda and the Companys CEO. The Company has since clarified that Mr. Gingo will not
participate on this committee as a voting member, leaving only the five independent board members
to conduct this review, including two directors nominated by activist stockholder Barington
Capital.
This Special Committee is in the process of exploring all strategic alternatives to maximize and
improve shareholder value, including, without limitation, a strategic sale, merger or acquisition
involving the Corporation.
In creating this special committee and ensuring that it is made up solely of independent directors,
A. Schulman strongly believes it has already met each and every one of the demands outlined in
stockholder proposal No. 3 put forth by Ramius Starboard Value & Opportunity Fund, LLC, and
therefore it is unnecessary for stockholders to support the proposal.
Mr. Holland commented, We have proactively addressed Ramius demands with regard to establishing a
wholly-independent special committee to review strategic alternatives for A. Schulman and are
therefore baffled by Ramius insistence on continuing to pursue their proposal, as it merely asks
us to do what we have already done. We feel that Ramius refusal to withdraw this proposal is just
further evidence of their unwillingness to work cooperatively with our Board.
The Company urges stockholders to vote for the Companys nominees and AGAINST Proposal No. 3 by
voting the WHITE proxy card by Internet, telephone or mail today. Shareholders who have questions
or require assistance with voting their WHITE proxy card, or need additional copies of proxy
materials, should contact Georgeson, which is assisting A. Schulman with the proxy solicitation, at
877-668-1646.
Contacts
Paul DeSantis
CFO and Treasurer of A. Schulman Inc.
330-666-3751
Nina Devlin/Giovanna Konicke
Brunswick Group
212-333-3810
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 2,500
people and has 17 manufacturing facilities in North America and Europe (including Asia). Revenues
for the fiscal year ended August 31, 2007, were $1.8 billion. Additional information about A.
Schulman can be found at http://www.aschulman.com.
Forward-Looking Statements
Certain statements in this release may constitute forward-looking statements within the meaning of
the Federal securities laws. These statements can be identified by the fact that they do not relate
strictly to historic or current facts. They use such words as anticipate, estimate, expect,
project, intend, plan, believe, and other words and terms of similar meaning in connection
with any discussion of future operating or financial performance. These forward-looking statements
are based on currently available information, but are subject to a variety of uncertainties,
unknown risks and other factors concerning the Companys operations and business environment, which
are difficult to predict and are beyond the control of the Company. Important factors that could
cause actual results to differ materially from those suggested by these forward-looking statements,
and that could adversely affect the Companys future financial performance, include, but are not
limited to, the following:
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Worldwide and regional economic, business and political conditions, including continuing
economic uncertainties in some or all of the Companys major product markets; |
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Fluctuations in the value of currencies in major areas where the Company operates,
including the U.S. dollar, euro, U.K. pound sterling, Canadian dollar, Mexican peso,
Chinese yuan and Indonesian rupiah; |
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Fluctuations in the prices of sources of energy or plastic resins and other raw
materials; |
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Changes in customer demand and requirements; |
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Escalation in the cost of providing employee health care; |
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The outcome of any legal claims known or unknown; and |
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The performance of the North American auto market. |
Additional risk factors that could affect the Companys performance are set forth in the Companys
Annual Report on Form 10-K. In addition, risks and uncertainties not presently known to the Company
or that it believes to be immaterial also may adversely affect the Company. Should any known or
unknown risks or uncertainties develop into actual events, or underlying assumptions prove
inaccurate, these developments could have material adverse effects on the Companys business,
financial condition and results of operations.
This release contains time-sensitive information that reflects managements best analysis only as
of the date of this release. A. Schulman does not undertake an obligation to publicly update or
revise any forward-looking statements to reflect new events, information or circumstances, or
otherwise. Further information concerning issues that could materially affect financial performance
related to forward-looking statements can be found in A. Schulmans periodic filings with the
Securities and Exchange Commission.
In connection with the solicitation of proxies, A. Schulman has filed with the Securities and
Exchange Commission (the SEC) a definitive proxy statement on December 19, 2007 (the Proxy
Statement). The Proxy Statement contains important information about A. Schulman and the 2007
Annual Meeting of Shareholders. A. Schulmans stockholders are urged to read the Proxy Statement
carefully.
On December 19, 2007, A. Schulman began the process of mailing the Proxy Statement, together with a
WHITE proxy card. Stockholders may obtain additional free copies of the
Proxy Statement and other documents filed with the SEC by A. Schulman through the website
maintained by the SEC at http://www.sec.gov. Copies of the Proxy Statement and any
amendments and supplements to the Proxy Statement also will be available for free at A. Schulmans
internet website at www.aschulman.com or by writing to A. Schulman, Inc., 3550 West Market Street,
Akron, Ohio 44333. In addition, copies of the Proxy Statement may be requested by contacting A.
Schulmans proxy solicitor, Georgeson Inc., toll-free at 1-877-668-1646 or by email at
aschulmaninc@georgeson.com. Detailed information regarding the interests of individuals who are
participants in the solicitation of proxies of the A. Schulmans stockholders is available on the
Proxy Statement filed with the SEC.