An $800 Million Merger in the Plastics Space

A. Schulman Inc.'s purchase of Citadel Plastics Holdings Inc., touted as a way to continue A. Schulman's transformation into a premier specialty plastics company.

Chris Newmarker

A. Schulman Inc. said Monday it will buy Citadel Plastics Holdings, Inc. for $800 million.

Akron, Ohio-based A. Schulman is purchasing Citadel--which  has 17 manufacturing locations in North America and three other continents--from private equity firms HGGC and Charlesbank Capital Partners.

With about half a billion dollars in annual revenue, Citadel produces thermoset composites and thermoplastic compounds for specialty product applications spanning multiple industries including healthcare. The company on its website notes that it offers multiple polymer compounds that are used in healthcare applications.

Its thermoplastic offerings include a comprehensive menu of base polymers, including polypropylene, polycarbonate, nylon, polyesters, styrenics, polyethylene, and alloys.

"Citadel enhances our thermoplastics platform and will create a more attractive and sustainable business by regionally extending our thermoplastic portfolio in areas such as flame retardants and thermoplastic blends," Bernard Rzepka, president and CEO of A. Schulman, said in a news release.

A. Schulman expects to close the deal within months, with $25 million in synergies achieved within 18 months of closing. Company officials expect savings to be driven mostly by sourcing activities and plant efficiency actions.

Chris Newmarker is senior editor of Qmed and MPMN. Follow him on Twitter at @newmarker.

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