A.Schulman To Acquire Citadel Plastics
In yet another acqusition, A.Schulman marks a significant strategic milestone as it continues to transform itself.
A.Schulman will mark a significant strategic milestone as it continues to transform itself from beyond thermoplastics into a premier specialty plastics organization with the acquisition of Citadel Plastics Holdings, Inc., West Chicago, Ill., a portfolio company of private equity firms HGGC and Charlesbank Chemical Partners since 2012. The transaction is expected to close in third quarter 2015.
Established in 2007, Citadel quickly became a specialty engineered plastics company leader in multiple niche applications, including: high-performance structural automotive components, electrical power distribution, downhole oil & gas components, and medical patient transport systems. With 2100 employees, its operates 21 manufacturing facilities throughout the world, including 10 thermoplastic facilities in the U.S. and Canada, and 11 thermoset composite plants (seven in North America, one in Germany, one in Brazil, and a joint venture consisting of two plants in China.
In a video presentation on the Schulman website, company president and CEO Bernard Rzepka, noted that Citadel’s significant revenue in the U.S., will enhanced the company’s regional scale and efficiencies, and also balance its current geographic footprint. “On the thermoplastics side, we will have a more attractive and sustainable business with Citadel. Upon completion of this deal, our thermoplastics business will have enhanced regional scale and efficiencies both in Europe and North America, as well as further extension into areas such as flame retardants and thermoplastic blends. While we expect synergistic effects with our existing business and Citadel, this transaction also enable us to add a second growth platform to our organization with its industry-leading, high-margin thermoset composites business.”
A.Schulman is well-versed in merger and acquisition integration. Since 2010, the company has completes nine acquisitions and three joint ventures, contributing 30% of sales and roughly 40% of adjusted operating income to the company fiscal 2014 results. The most recent acquisitions, were that of Ferro Corp.’s specialty plastics business and color and additives concentrate maker Prime Colorants.
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