A. Schulman Inc. (Fair Lawn, OH), an international supplier of high-performance plastic compounds, powders and resins, announced on March 23 that it has executed a definitive agreement to acquire all of the issued and outstanding capital stock of privately held Citadel Plastics Holdings Inc. (Chicago, IL), a portfolio company of private equity firms HGGC and Charlesbank Capital Partners, for $800 million.
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 and construction, consumer, electrical, energy, healthcare and safety. In 2014, Citadel had approximately $525 million of pro-forma revenue (giving effect to their recent acquisition) and pro-forma earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $75 million.
"Today's announcement marks a significant strategic milestone as we continue to transform the company beyond plastic compounding into a premier specialty plastics organization," said Bernard Rzepka, President and CEO of A. Schulman. "In early 2014, we communicated our expanded vision, which defined target areas to drive growth for A. Schulman beyond our traditional space. Citadel provides us a unique opportunity to enhance our future growth plans."