LyondellBasell completes acquisition A Schulman

LyondellBasell completes acquisition of A Schulman

5:21 AM, 22nd August 2018
LyondellBasell logo. ©
LyondellBasell logo. ©

HOUSTON, US/ LONDON, UK: LyondellBasell (LYB), has completed the acquisition of A Schulman Inc.

The acquisition more than doubles LyondellBasell's existing compounding business and broadens the company's reach into growing, high-margin end markets such as automotive, construction materials, electronic goods and packaging.

"This acquisition builds upon our complementary strengths, creating a substantial value proposition for our customers and positioning the company for future growth in this space. Moving forward, our team is focused on a seamless integration that captures opportunity and creates exceptional value for our shareholders," said Bob Patel, CEO of LyondellBasell.

Advanced polymer solutions segment

The combined business will operate as a stand-alone Advanced Polymer Solutions reporting segment. In addition to LyondellBasell's existing polypropylene compounding (PPC) assets and the A Schulman assets, the segment will include:

  • Catalloy thermoplastic resins – polymers that combine the advantages of polyolefins and elastomers, offering customers durable and flexible products for the automotive, packaging and construction industries
  • Polybutene-1 resins – plastics that offer a combination of temperature resistance and strength and are used in modern water pipes, construction materials and re-closeable packaging

New to LyondellBasell's product portfolio are several materials previously manufactured by A. Schulman that will also be included in the Advanced Polymer Solutions segment going forward:

  • Engineered composites – lightweight, strong materials that are used in infrastructure, aerospace and automotive applications such as headlamps
  • Powders – specialty particle materials used in coatings, rotational moulding, toll compounding and other technical applications
  • Masterbatches – colouring and additive materials used in the production of paper, paint and plastic goods around the world

"With the combination of LyondellBasell's vertically integrated polypropylene compounding business and A. Schulman's agile customer focus across broad and growing markets, Advanced Polymer Solutions is well positioned to deliver significant value for our customers and our shareholders. "I'm convinced we have all of the ingredients to build a world-class business that will reach a multitude of markets with a full range of innovative, tailored products and solutions," said Jim Guilfoyle, executive vice president, advanced polymer solutions and global supply chain for LyondellBasell.

Shearman & Sterling LLP served as LyondellBasell's legal counsel during the acquisition, while JP Morgan and Dyal Co LLC served as co-financial advisors. Skadden, Arps, Slate, Meagher & Flom LLP served as A Schulman's legal counsel, while Citigroup Global Markets, Inc. served as financial advisor.

© Worldofchemicals News



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