FAIRLAWN, Ohio—A. Schulman Inc. has set June 14 as the date for a special meeting for shareholders to vote on a merger agreement with global plastics, chemicals and refining company LyondellBasell.
Schulman, a Fairlawn-based supplier of plastic compounds, composites and resins, said in a news release that it has established a record date of May 7 for the special meeting, where shareholders will be asked to approve the previously announced deal with LyondellBasell Industries N.V. and LYB Americas Holdco Inc., a wholly owned subsidiary of LyondellBasell. The companies said the merger is valued at about $2.25 billion.
Directors of Schulman recommend that stockholders vote in favor of the merger with LyondellBasell. The company said in the release that it expects the deal to close in the second half of this year, subject to shareholder approval, remaining regulatory approvals, and customary closing conditions.
If the merger is completed, Schulman stockholders will receive $42 in cash and one "contingent value right" per share. Each contingent value right will provide a shareholder "with an opportunity to receive certain net proceeds, if any are recovered, from claims arising from" Schulman's Citadel and Lucent acquisitions.
When the merger deal was announced in February, the companies said the combined Schulman and LyondellBasell businesses had revenues of $4.6 billion and adjusted EBITDA of $446 million over the past 12 months.
Schulman has about 5,200 employees and 54 manufacturing facilities globally. It reported sales of about $2.5 billion for the fiscal year ended Aug. 31, 2017.