Sector News

A. Schulman Announces Closing Of Citadel Acquisition

June 2, 2015
Energy & Chemical Value Chain
/PRNewswire/ – A. Schulman, Inc. a leading international supplier of high-performance plastic compounds, powders and resins, announced today that it has completed the previously announced acquisition of HGGC Citadel Plastics Holdings, Inc. (“Citadel”), 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.
 
“We are thrilled to add Citadel to our portfolio of highly specialized businesses, and welcome the talented group of associates to the A. Schulman team,” said Bernard Rzepka, president and chief executive officer of A. Schulman. “With significant revenue in the United States, 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.”
 
“The Citadel team is very excited to become an important part of A. Schulman,” said Mike Huff, chief executive officer of Citadel. “We are confident that our history of growth and innovation will only be enhanced by our new partnership with A. Schulman and we thank HGGC and Charlesbank for their support in helping us reach this new phase of our business.”
 
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. The Citadel acquisition builds upon this successful strategy, and provides our customers with an extended, value-added product offering.
 
HSBC Securities (USA), Inc. acted as exclusive M&A advisor to A. Schulman, Inc. in connection with this transaction. J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated served as financial advisors. Squire Patton Boggs (US) LLP served as A. Schulman’s outside legal counsel in connection with the acquisition, Jones Day served as legal counsel in connection with the 2015 Senior Notes and the Convertible Special Stock, and Vorys, Sater, Seymour and Pease LLP served as legal counsel in connection with the Credit Facilities.
 
About Citadel Plastics Holdings, Inc.Based in West Chicago, IL, Citadel is a leading North American specialty engineered plastics company that produces thermoset composites and thermoplastic compounds for specialty product applications spanning multiple industries including transportation, industrial & construction, consumer, electrical, energy and healthcare & safety. Citadel has approximately 1,200 employees and operates 21 manufacturing facilities throughout the world, including 10 thermoplastic facilities in the United States and Canada, and 11 thermoset composite plants comprising seven in North America, two in Mexico, one in Germany, one in Brazil, and a joint venture consisting of two plants in China.
 
Source: A. Schulman, Inc.

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