Akron’s A. Schulman Inc. has agreed to be acquired by LyondellBasell for $2.25 billion in cash and debt assumption.
The deal is expected to create an advanced polymer solutions business with broad geographic reach, leading technologies and a diverse product portfolio. LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, and A. Schulman, a leading global supplier of high-performance plastic compounds, composites and powders, had combined revenue of $4.6 billion and adjusted EBITDA of $446 million over the last 12 months.
LyondellBasell believes it will save $150 million in costs within two years.
"By leveraging our proven approach to operational, commercial and business excellence, the combined business will create significant value for our shareholders and customers,” LyondellBasell CEO Bob Patel said in a statement.
The deal — which must be approved by the companies’ respective boards, Schulman’s shareholders and pass regulatory muster — is expected to close in the second half of 2018.
"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," Schulman CEO Joseph M. Gingo said.
A. Schulman legal counsel: Skadden, Arps, Slate, Meagher & Flom LLP
A. Schulman financial adviser: Citigroup Global Markets Inc.
LyondellBasell legal counsel: Shearman & Sterling LLP
LyondellBasell co-financial advisers: J.P. Morgan and Dyal Co.
