LyondellBasell, a provider of plastics, chemicals and refining solutions, has agreed to acquire US-based A. Schulman for around $2.25bn.
As per terms of the deal, LyondellBasell will purchase A. Schulman common stock by paying $42 per share in cash.
Based in Akron, Ohio, A. Schulman supplies high-performance plastic compounds, composites and resins to its customers.
The company supplies its product solutions to various markets, including packaging, mobility, building and construction, electronics and electrical, agriculture, personal care and hygiene, sports, leisure and home, custom services and others.
A. Schulman produces a range of high-performance plastic compounds and resins, which can be used in blowmolding, injection molding and extrusion applications.
Its additive concentrates are said to enhance BOPP, blown or cast film,
With around 5,100 employees, A. Schulman operates 54 manufacturing facilities across the globe.
The acquisition will allow LyondellBasel to expand its plastics business, in addition to creating polymer solutions business with advanced technologies and diverse product portfolio.
Subject to customary closing conditions, the deal is expected to complete in the second half of this year.
LyondellBasell CEO Bob Patel said: “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.”
A. Schulman chairman, president and CEO Joseph Gingo said: "LyondellBasell not only shares our commitment to meeting customers' demanding requirements, but with its scale and resources, the combined business will be better positioned to address a broader range of customer needs by integrating across applications and offering customers a wider range of solutions in attractive and growing markets.”
In November 2017, LyondellBasell agreed to acquire a 50% stake in Netherlands-based plastics recycling firm Quality Circular Polymers (QCP).
The remaining 50% stake in the plastics recycling firm will be owned by French water and waste management firm Suez.
Image: Polypropylene from LyondellBasell’s Bayport plant in Texas, Photo: courtesy of LyondellBasell Industries Holdings B.V.