A. Schulman Agrees To Acquire Citadel Plastics For $800 Mln - Quick Facts

(RTTNews) - Resin maker A. Schulman, Inc. (SHLM), a supplier of high-performance plastic compounds, powders and resins, said it has executed a definitive agreement to acquire all issued and outstanding capital stock of privately held Citadel Plastics Holdings, Inc., a portfolio company of private equity firms HGGC and Charlesbank Capital Partners, for $800 million.

Due to the timing of the deal, it is not expected to be accretive in the company's fiscal 2015, but is expected to be accretive in the first 12 months of ownership. The deal is expected to close in the third quarter of the company's fiscal 2015.

Based in West Chicago, IL, Citadel is a leading North American specialty engineered plastics company that produces thermoset composites and thermoplastic compounds for specialty product applications spanning multiple industries, including transportation, industrial & construction, consumer, electrical, energy and healthcare & safety.

In 2014, Citadel had about $525 million of pro-forma revenue and pro-forma earnings before interest, taxes, depreciation, and amortization of around $75 million.

The company expects achieving approximately $25 million in synergies within 18 months of closing, driven primarily by sourcing activities and plant efficiency actions.