FAIRLAWN, Ohio—Shareholders in materials firm A. Schulman Inc. have approved a deal under which LyondellBasell Industries will acquire Schulman for $2.25 billion.
The vote was June 14. The transaction still needs regulatory approvals in the European Union, Russia and from the Committee on Foreign Investment in the U.S.
In a news release, Joseph Gingo, Schulman chairman, president and CEO, said that shareholders of Fairlawn-based Schulman "have solidly affirmed the value that the company's merger with LyondellBasell represents.
"This outcome serves the best interests of all our stakeholders including our customers, suppliers, employees and the communities in which we operate," he added.
When the deal is completed, Schulman stockholders will be entitled to receive $42 in cash and one contingent value right for each share of common stock. The transaction is expected to close in the third quarter of 2018.
LBI—based in Houston and London—made the offer for Schulman in February. LBI is one of the world's largest producers of olefins and polyolefins, including polypropylene and polyethylene. Schulman is a leading compounder and concentrates-maker in North America and Europe and also ranks as one of Europe's largest resin distributors.
The transaction would create an industry-leading compounding business with combined sales of $4.6 billion. The new business expects to capture $150 million in cost synergies within two years, creating significant value for shareholders.
The deal adds Schulman's $2.5 billion in annual sales, 54 manufacturing sites and 2.4 billion pounds of production capacity to LBI's own PP compounding unit, which has $2.1 billion in annual sales, 18 manufacturing sites and 2.5 billion pounds of production capacity.