MOSCOW (MRC) -- LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, has announced it has completed the acquisition of A. Schulman, Inc., a leading global supplier of high-performance plastic compounds, composites and powders, as per LyondellBasell's press release.
"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," said Bob Patel, CEO of LyondellBasell. "Moving forward, our team is focused on a seamless integration that captures opportunity and creates exceptional value for our shareholders."
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.
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 molding, toll compounding and other technical applications.
- Masterbatches - coloring 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," said Jim Guilfoyle, Executive Vice President, Advanced Polymer Solutions and Global Supply Chain for LyondellBasell. "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."
As MRC informed previously, in the second half of May 2018, LyondellBasell, one of the largest plastics, chemicals and refining companies in the world, announced that it has received unconditional clearance from the Chinese State Administration of Market Regulation (SAMR) for its pending acquisition of A. Schulman.
A. Schulman, Inc. is a leading international supplier of high-performance plastic compounds, composites and resins headquartered in Akron, Ohio. Since 1928, the company has been providing innovative solutions to meet its customers' demanding requirements. The company's customers span a wide range of markets such as packaging, mobility, building & construction, electronics & electrical, agriculture, personal care & hygiene, sports, leisure & home, custom services and others. The company employs approximately 5,200 people and has 54 manufacturing facilities globally. A. Schulman reported net sales of approximately USD2.5 billion for the fiscal year ended August 31, 2017.
LyondellBasell is one of the world's largest plastics, chemical and refining companies and a member of the S&P 500. LyondellBasell manufactures products at 55 sites in 17 countries. LyondellBasell is also a leading licensor of polypropylene and polyethylene technologies. The more than 250 polyolefin process licenses granted by LyondellBasell are twice that of any other polyolefin technology licensor.
MRC