Transaction expected to create a Polymers Compounding Platform with pro-forma USD 4.6 bn in Sales
Plastics, chemicals and refining products supplier LyondellBasell [NYSE: LYB] (Houston, Texas – United States) and A. Schulman, Inc. [NASDAQ: SHLM] (Akron, Ohio – United States), a supplier and distributor of high-performance plastic compounds, composites and powders, last week announced that the two companies have entered into a definitive agreement, under which LyondellBasell will acquire A. Schulman for a total consideration of USD 2.25 bn.
According to LyondellBasell, the acquisition will build upon an existing platform in this space, in order to create an “Advanced Polymer Solutions” business with broad geographic reach, leading technologies and a diverse product portfolio. Pro-forma, the combined revenue was USD 4.6 bn and the adjusted EBITDA USD 446 mn over the last 12 months. The company expects “to capture USD 150 mn in run-rate cost synergies within two years”. As the transaction will in effect double the size of LyondellBasell’s existing compounding business, it will establish a platform for future growth with reach into additional high-growth markets, based on complementary strengths and capabilities, which will provide customers with a full range of innovative products and end-to-end solutions, LyondellBasell said in the statement.
The proposed acquisition, which has been unanimously approved by the boards of LyondellBasell and A. Schulman, is subject to customary closing conditions, including certain regulatory approvals. It also requires a positive vote by A. Schulman shareholders. The transaction is expected to close in the second half of 2018.
Source: LyondellBasell press release
HGE – DCG / 19.02.2018