LyondellBasell completes $2.25 billion Schulman acquisition

Petrochemicals company LyondellBasell has finalized its multi-billion dollar acquisition of Ohio plastics maker A. Schulman, doubling the size of its existing compounding business.

The US$2.25 billion acquisition, announced earlier this year, will enable Houston-based LyondellBasell to produce a wider range of plastic compounds for use in consumer and industrial products, including automobiles, packaging, electronics and construction materials.

LyondellBasell’s Channelview, Texas complex is said to be one of the largest petrochemical facilities along the U.S. Gulf Coast, covering an area of nearly 3,900 acres.

“The acquisition of A. Schulman is a natural extension of our current platform. This combination will allow us to provide our customers with a wider range of innovative solutions while adding the ability to serve high-growth end markets beyond the automotive sector, such as packaging and consumer products, electronics and appliances, building and construction, and agriculture,” LyondellBasell CEO Bob Patel said in a statement. “By leveraging our proven approach to operational, commercial and business excellence, the combined business will create significant value for our shareholders and customers.”

LyondellBasell’s existing compounding segment uses polypropylene, a common plastic, to create products such as lighter-weight bumpers and door panels for use automotive manufacturing. With the acquisition, that segment will grow to include polyethylene compounding, using the world’s most common plastic to expand its slate of products tailored to customer specifications.

The combined operations will create the largest compounding company in the world with some 6,600 employees and annual revenue expected to exceed US$4.6 billion.