HOUSTON—In a major global plastics materials deal, LyondellBasell Industries is acquiring A. Schulman Inc. for $2.25 billion.
LBI—based in Houston and London—is one of the world's largest producers of olefins and polyolefins, including polyethylene resins. Fairlawn, Ohio-based Schulman is a leading compounder and concentrates maker in North America and Europe and also ranks as one of Europe's largest resin distributors.
In a Feb. 15 news release, LBI officials said that the deal "builds upon LyondellBasell's existing platform in the compounding/composites/powders space to create a premier advanced polymer solutions business with broad geographic reach, leading technologies and a diverse product portfolio."
The transaction creates an industry-leading compounding business with combined sales of $4.6 billion and adjusted EBITDA of $446 million over the last 12 months, they added. The new business expects to capture $150 million in run-rate cost synergies within two years, creating significant value for shareholders.