LyondellBasell announced yesterday that its’ $2.25-billion acquisition of plastics compounder A. Schulman has closed. The deal was announced in February. It more than doubles the size of LyondellBasell’s existing compounding business, while expanding the company's presence in the automotive, construction materials; electronics and packaging end markets.
LyondellBasell will now establish a new reporting segment called advanced polymer solutions, which will consist of Schulman, LyondellBasell’s existing polypropylene compounding (PPC) assets, catalloy thermoplastic resins, and polybutene-1 resins. The Schulman businesses add engineered composites, powders, and masterbatches to LyondellBasell’s portfolio. This business had $4.6 billion in sales and $446 million in adjusted EBITDA during the 12 months ended February 2018. Jim Guilfoyle, who was recently promoted to executive vice president, will lead the segment
"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,’ says Bob Patel, CEO of LyondellBasell.
The deal received antitrust clearance and shareholder approval in the spring.
LyondellBasell is also in talks to acquire a controlling stake in Braskem. Combined, acquiring Braskem and Schulman would make LyondellBasell a top-three chemicals producer, with annual sales totaling nearly $50 billion.
Meanwhile, the day before yesterdayLyondellBasell broke ground on its $2.4-billion propylene oxide (PO) and tertiary butyl alcohol (TBA) plant in Channelview; Texas, near Houston. The plant is the single largest capital investment in the company's history, and will be the largest PO-TBA production facility in the world with a combined capacity of 1.47 million metric tons/year. The decision to build the plant was announced in July 2017.