LyondellBasell (Houston, TX), one of the largest plastics, chemicals and refining companies in the world, announced on Aug. 21 that it has completed the acquisition of A. Schulman Inc. (Fairlawn, OH), a leading global supplier of high-performance plastic compounds, composites and powders. The $2.25-billion acquisition reportedly creates an industry-leading compounding giant with combined revenue of $4.6 billion.
“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.
A. Schulman’s stockholders approved the merger at a June 14 special stockholder meeting. The company serves a broad range of markets, including agriculture, building & construction, electronics & electrical, mobility, packaging, personal care/hygiene, sports and leisure, and custom services, with plants, offices and technical centers in North America, Latin America, Europe, the Middle-East, Africa and Asia-Pacific.
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. LyondellBasell said that the company is the largest producer of polypropylene compounds and the largest licensor of polyolefin technologies.
According to LyondellBasell, the combined business will operate as a stand-alone Advanced Polymer Solutions reporting segment. In addition to LyondellBasell’s existing polypropylene compounding assets and the A. Schulman assets, the segment will include Catalloy thermoplastic resins that combine the advantages of polyolefins and elastomers for durable, flexible products for the automotive, packaging and construction industries; and Polybutene-1 resins that offer a combination of temperature resistance and strength in applications such as water pipes, construction materials and re-closeable packaging.
New to LyondellBasell’s product portfolio are several materials previously manufactured by A. Schulman that will be included in the Advanced Polymer Solutions segment going forward. Those include engineered composites used in infrastructure, aerospace and automotive applications; powders (specialty particle materials) used in coatings, rotational molding, toll compounding and other technical applications; and masterbatches including 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 shareholders,” said Jim Guilfoyle, Executive Vice President, Advanced Polymer Solutions and Global Supply Chain for LyondellBasell. “I’m convinced that 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.”