Citadel Plastics sold to A. SchulmanCitadel Plastics sold to A. Schulman
Citadel Plastics Holdings Inc. (Chicago, IL), a global provider of thermoplastic and engineered composite compounds, today announced that its owners, private equity firms HGGC and Charlesbank Capital Partners, have entered into a definitive agreement to sell the company to global plastics supplier A. Schulman (Fairlawn, OH) for $800 million. The transaction is expected to close in the second quarter of 2015.
March 16, 2015
Acquired by HGGC and Charlesbank in 2012, Citadel operates 21 production facilities in North America, Europe, Asia and Latin America. The company offers a broad portfolio of proprietary compounds to multiple industries including transportation, industrial & construction, consumer, electrical, energy and healthcare & safety.
During HGGC and Charlesbank's ownership, and in partnership with Citadel management, the company has significantly expanded its capabilities, geographic reach and customer base through organic growth and strategic acquisitions. Citadel added Lucent Polymers in 2013 and the Composites Group in late 2014.
Speaking with PlasticsToday when the Lucent acquisition was first announced, Mike Huff, Citadel CEO, said that it was a targeted acquisition strategy. "We feel we're bringing a broader technology access to our customers and that's why Lucent was attractive to us, it strengthens our presence in the engineering thermoplastic space," said Huff. This purchase marked the seventh plastics-related acquisition for Citadel since 2007.
The combination of these businesses accelerated the evolution of Citadel into an industry leader with more than 1,300 customers and over 2,000 active products that have grown revenues 70% since the initial investment, according to the companies.
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