LyondellBasell has positioned itself as a serious global compounding power by completing its acquisition of A. Schulman.
A Schulman Lyondell
Yesterday (August 21st 2018), the Houston-based plastics, chemical and refining company, announced its purchase of the worldwide supplier of high-performance plastic compounds, composites and powders, which effectively more than doubles LyondellBasell’s compounding business and expands its reach into end markets including automotive, construction materials, electricals 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,” 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 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 includes Catalloy thermoplastic resins. These are polymers that combine the advantages of polyolefins and elastomers, offering customers durable and flexible products for the automotive, packaging and construction industries.
The segment also includes 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.
LyondellBasell
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, including engineered composites for automotive, powders for coatings and other products, and masterbatches.
“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.”
Shearman & Sterling LLP served as LyondellBasell’s legal counsel during the acquisition, while J.P. 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.
