Sector News

LyondellBasell to acquire Schulman for $2.25 billion

February 15, 2018
Energy & 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

March 24, 2024

Thomas Gangl leaves Borealis

Energy & Chemical Value Chain

Appointed Borealis CEO in 2021, Thomas has led key initiatives including the sale of the nitrogen business, acquisitions of Rialti Spa and Integra Plastics AD, and Borouge’s IPO. He also made the final investment decision for the Borouge 4 plant, set to be the world’s largest polyolefin complex.

March 24, 2024

Chemours names Dignam permanent CEO

Energy & Chemical Value Chain

The Chemours Co. today named interim CEO Denise Dignam as the company’s permanent CEO and president, as well as a member of the board of directors, effective immediately. Dignam has been interim CEO since late February, when former CEO Mark Newman was placed on leave due to an internal investigation.

March 24, 2024

Neste merges three business lines into new Renewable Products unit

Energy & Chemical Value Chain

Neste Corp. (Espoo, Finland) has completed its organizational change process, announced on 1 November 2023. Neste informed that it will merge its three renewable business units into one Renewable Products business unit as well as restructure its functions to better support business-driven ways of working.

How can we help you?

We're easy to reach