LONDON (ICIS)--LyondellBasell has completed the $2.25bn acquisition of high-performance plastic compounds, composites and powders supplier A Schulman, the Netherlands-domiciled chemical major announced on Tuesday
The acquisition, according to LyondellBasell, more than doubles the company’s existing compounding business and broadens its reach into growing, high-margin end markets such as automotive, construction materials, electronic goods and packaging.
"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."
The combined business will operate as a stand-alone Advanced Polymer Solutions reporting segment.
In addition to the company’s existing propylene compounding assets and the A Schulman assets, the segment will include catalloy thermoplastic resins and polybutene-1 resins.
Also included in the advanced polymers solutions segment will be engineered composities, powders, and masterbatches, which are all new to LyondellBasell’s product portfolio.
"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 our shareholders," said Jim Guilfoyle, executive vice president for LyondellBasell’s Advanced Polymer Solutions and Global Supply Chain segment.
"I'm convinced 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."
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