A Schulman completes acquisition Citadel

A Schulman completes acquisition of Citadel

6:54 AM, 2nd June 2015
A Schulman completes acquisition of Citadel
Bernard Rzepka, president and chief executive officer, A Schulman. (File photo)

AKRON, US: A Schulman Inc said that it has completed the previously announced acquisition of HGGC Citadel Plastics Holdings Inc, a portfolio company of private equity firms HGGC and Charlesbank Capital Partners, for $800 million.

A Schulman expects the transaction to be accretive in the first 12 months of ownership and to realize approximately $25 million in synergies within the next 18 months.

“With significant revenue in the US, Citadel greatly enhances our regional scale and efficiencies, as well as balances our current global geographic footprint. Citadel also provides a strong entry point to our ‘Expanded Vision’ initiative by adding a second strategic growth platform to our organization with its industry-leading, value-added specialty engineered composites business,” said Bernard Rzepka, president and chief executive officer, A Schulman.

“We are confident that our history of growth and innovation will only be enhanced by our new partnership with A. Schulman,” said Mike Huff, chief executive officer, Citadel.

Since 2010, A Schulman has been executing a deliberate acquisitive growth strategy to aggressively grow in key geographic regions and expand the company’s global specialty product portfolio and capabilities.

HSBC Securities (USA) Inc acted as exclusive M&A advisor to A. Schulman Inc, while J P Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Inc served as financial advisors. Squire Patton Boggs (US) LLP served as A Schulman’s outside legal counsel; Jones Day served as legal counsel for the 2015 senior notes and the convertible special stock; and Vorys, Sater, Seymour and Pease LLP served as legal counsel for the credit facilities.

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