LyondellBasel, a provider of plastics, chemicals and refining solutions, has completed the acquisition of US-based A. Schulman for about $2.25bn.
Schulman which is based in Akron of Ohio, supplies high-performance plastic compounds, composites and resins for use in various applications.
The firm produces a range of high-performance plastic compounds and resins, which can be used in blowmolding, injection molding and extrusion applications.
The company offers its products solutions to various ncluding packaging, mobility, building and construction, electronics and electrical, agriculture, personal care and hygiene, sports, leisure and home, custom services and others.
LyondellBasell CEO Bob Patel said: “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.
“Moving forward, our team is focused on a seamless integration that captures opportunity and creates exceptional value for our shareholders.”
The acquired business will help LyondellBasell to double its existing compounding business, and expand its presence in the high-margin end markets such as electronic goods and packaging, construction materials and automotive.
The combined business will run as stand-alone Advanced Polymer Solutions reporting segment, which includes LyondellBasell’s existing polypropylene compounding (PPC) assets.
The segment includes Catalloy thermoplastic resins that combine the benefits of polyolefins and elastomer, providing durable and flexible products to the customers in the automotive, packaging and construction industries.
Polybutene-1 resins can be used in re-closeable packaging, modern water pipes and construction materials.
LyondellBasel will also include engineered composites, powders and masterbatches in the new segement.
Engineered composites are lightweight material used in infrastructure, aerospace and automotive applications such as headlamps, while powders are specialty particle materials used in coatings, rotational molding, toll compounding and other technical applications.
Masterbatches are coloring and additive materials used in the production of paper, paint and plastic goods.
LyondellBasell global supply chain and Advanced Polymer Solutions executive vice president Jim Guilfoyle said: “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.”