LyondellBasell to acquire A. Schulman, Inc. for $2.25 billion

LyondellBasell is to acquire A. Schulman, Inc. for a total of $2.25 billion (approx.. £1.6bn GBP).

LyondellBasell, one of the world’s largest plastics, chemicals and refining companies says the purchase of A. Schulman, a global supplier of high-performance plastic compounds, composites and powders, will allow it to create a new, combined business unit with broad geographic reach.

To be named ‘Advanced Polymer Solutions’, the new venture doubles the size of LyondellBasell's existing compounding business and, it says, establishes a platform for future growth with reach into additional high-growth markets.

“The acquisition of A. Schulman is a natural extension of our current platform. This combination 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 will purchase 100 percent of A. Schulman common stock for $42 per share (approx. £30 GBP) and is using cash-on-hand to finance the acquisition, which has been unanimously approved by the respective boards of the two parties.

"This transaction, which provides our shareholders with a compelling, immediate cash premium, represents the culmination of a robust assessment of strategic alternatives undertaken by our Board of Directors," said Joseph M. Gingo, Chairman, President and Chief Executive Officer of A. Schulman, Inc.

Gingo said the acquisition would address a “broader range of customer needs” through integration across applications and offering a range of solutions in attractive and growing markets.

“We also expect this combination to create significant opportunities for A. Schulman employees, whose professionalism and expertise will be integral to advancing LyondellBasell's vision, values and commitment to making a positive global impact,” he added.

The acquisition is expected to close in the second half of 2018.