Plastics Compounder and Distributor A. Schulman to acquire Citadel Plastic Holdings
Plastics compounder and distributor A. Schulman, Inc. (Akron, OH – United States of America), announced today that it has signed an agreement to acquire Citadel Plastics Holdings, Inc. (“Citadel”) for USD 800 mn. The company, based in West Chicago, IL is a portfolio company of private equity firms HGGC and Charlesbank Capital Partners.
Citadel is a specialty engineered plastics company that produces thermoset composites and thermoplastic compounds like transportation, industrial & construction, consumer, electrical, energy and healthcare & safety. In 2014, the company had approximately USD 525 mn of pro-forma revenue (giving effect to a recent acquisition) and a pro-forma EBITDA of ca. USD 75 mn. It has 1,200 employees and operates 21 manufacturing facilities throughout the world, including 10 thermoplastic facilities in the United States and Canada, and 11 thermoset composite plants (seven in North America, one in Germany, one in Brazil, and a joint venture consisting of two plants in China).
The transaction is subject to standard closing conditions. It is expected to close by end of May. A. Schulman expects achieving approximately USD 25 mn in synergies within 18 months of closing, “driven primarily by sourcing activities and plant efficiency actions”.
Source: A. Schulman press release
HGE – DCG / 29.03.2015