Sector News

LyondellBasell to acquire Schulman for $2.25 billion

February 15, 2018
Chemical Value Chain

LyondellBasell Industries has reached to acquire A. Schulman for $2.25 billion, significantly expanding its compounding business.

The $42/share purchase price represents an 8.7% premium to Schulman’s closing price on 14 February and values Schulman at 11.0 times last-twelve-months adjusted EBITDA.

LyondellBasell says the deal will create an “industry-leading compounding business” with combined revenue of $4.6 billion/year and adjusted EBITDA of $446 million over the last 12 months. LyondellBasell says the addition of Schulman broadens its existing polypropylene (PP) business by adding colorants, masterbatches, powders, and engineered composites to its portfolio.

Schulman’s business also provides LyondellBasell’s compounding business, which had been focusing on automotive, entry into packaging, building and construction, electronics and appliances, and agricultural markets. “The expanded business is well positioned to compete in attractive end markets that are growing above GDP,” LyondellBasell says.

The $4.6 billion sales figure consists of LyondellBasell’s 2017 PP compounding sales of $2.1 billion and Schulman’s revenue of $2.5 billion for the year ended 30 November. The EBITDA figure represents LyondellBasell’s 2017 PP compounding earnings of $241 million and Schulman’s adjusted EBITDA of $205 million for the year ended 30 November.

The deal has been approved by the LyondellBasell and Schulman boards, subject to customary closing conditions, and is expected to close in the second half of 2018. LyondellBasell expects to capture $150 million in run-rate cost synergies within two years.

By Ian Young

Source: Chemical Week

comments closed

Related News

January 15, 2022

Neste brings liquefied plastic waste trial to successful conclusion for industrial-scale recycling

Chemical Value Chain

Neste is announcing the conclusion of its first series of trials into processing liquefied waste plastic with chemical recycling technology at its Porvoo refinery in Finland. The oil refining company says it has processed about 800 tons of liquefied waste plastic over the last two years – roughly the same amount generated annually by a European city with 500,000 people.

January 15, 2022

SIKA posts record sales for 2021 – growth of 17.1%

Chemical Value Chain

Sika performed well in a challenging environment in 2021. Despite the persistent COVID-19 pandemic and bottlenecks in the procurement of raw materials, sales rose significantly to a record CHF 9.24 billion, corresponding to growth of 17.1% in local currencies.

January 15, 2022

Ineos joins Nextloopp’s polypropylene recycling project for food-grade polymers

Chemical Value Chain

Ineos Olefins and Polymers Europe is joining the pioneering polypropylene (PP) recycling project Nextloopp, supporting its delivery of food-grade recycled content. The chemicals company will orchestrate a pivotal two-year project that will inform the building of a demonstration plant in the UK to produce 10,000 metric tons of recycled polypropylene (rPP) annually.

Send this to a friend