LyondellBasell to Acquire A. Schulman
Doubles the Size of LyondellBasell's Compounding Business
LyondellBasell and A. Schulman, Inc., a leading global supplier of high-performance plastic compounds, composites and powders, have entered into a definitive agreement under which LyondellBasell will acquire A. Schulman for a total consideration of USD 2.25 billion.
The acquisition builds upon LyondellBasell's existing platform in this space to create a premier Advanced Polymer Solutions business with broad geographic reach, leading technologies and a diverse product portfolio. "The acquisition of A. Schulman [...] will allow us to provide our customers with a wider range of innovative solutions while adding the ability to serve high-growth end markets beyond the automotive sector, such as packaging and consumer products, electronics and appliances, building and construction, and agriculture," said Bob Patel, Chief Executive Officer of LyondellBasell.
LyondellBasell is using cash-on-hand to finance the acquisition. LyondellBasell expects to achieve USD 150 million in run-rate cost synergies within two years, primarily by leveraging its well-established approach to cost discipline and productivity, as well as its culture of operational, business and commercial excellence. Further, the acquisition is expected to be accretive to earnings within the first full year following close. The combined businesses had revenues of USD 4.6 billion and adjusted EBITDA of USD 446 million over the last 12 months.
The proposed acquisition, which has been unanimously approved by the respective boards of LyondellBasell and A. Schulman, is subject to customary closing conditions, including regulatory approvals and approval by A. Schulman shareholders. The acquisition is expected to close in the second half of 2018.
A. Schulman, Inc.
LyondellBasell Industries Headquarters Europe, Asia
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