NEWS LyondellBasell to buy A Schulman


LyondellBasell has agreed to buy compounding and composites giant A Schul- man for $2.25bn, in addition to assuming outstanding debt and certain other obligations. The company said the acquisition builds on its existing platform in this space “to create a premier Advanced Polymer Solu- tions business with broad geographic reach, leading technologies and a diverse product portfolio”. CEO Bob Patel added it will enable LyondellBasell to reach into markets beyond automotive, where Schul- man is strong, such as packaging, consumer products, electronics and appliances, construction and agriculture. Schulman’s president, chairman and CEO Joseph Gingo said the deal “pro- vides our shareholders with a compelling, immediate cash premium”. He added that it represented “the culmination of a robust assessment of strategic alternatives undertaken by


about 18,500 people in more than 100 countries. n In a separate move, Schulman said it is partner- ing with 3M in Europe to develop insulating and light weight compounds based on the latter’s Glass Bubbles hollow glass microspheres. “First innovations which


LyondellBasell CEO Bob Patel


our board of directors.” Schulman has been going through a “resetting” of the business following the discovery of alleged reporting irregularities in parts of the Citadel Plastics business it acquired back in 2015 for $800m. These are still the subject of legal action, reflected in the inclusion of a contingent value right (CVR) in the LyondellBasell deal. LyondellBasell expects to achieve $150m in cost synergies within two years through the deal, which it


Schulman Chairman, President and CEO Joseph Gingo


said should be accretive to earnings within the first full year following closing. This is scheduled for 2H 2018 (subject to regulatory approvals and approval by A. Schulman shareholders). Combined, Schulman


and LyondellBasell’s Polypropylene Compound- ing (PPC) business repre- sents revenues of $4.6bn and adjusted EBITDA of $446m, based on the 12-month periods ending on 31 December and 30 November 2017 respec- tively. They currently employ


are now in production, such as scuff plates in vehicles, show great potential for further light-weight applica- tions’, says Heinrich Lingnau, Vice President and General Manager EMEA at A Schulman. “Due to the combination of 3M’s hollow glass beads and our innovative filler systems, a weight reduction of 15% can be achieved without compromising on product properties.” The company said the


use of microspheres also enables thermal conductiv- ity reductions of up to 23%. Some of the Glass Bubbles compounds can be used in existing injection moulding tooling. � www.lyondellbasell.com � www.aschulman.com


Velox grows range with Life biocides


Thailand-based antimicrobials manufacturer Life Material Technologies has appointed Velox to distribute its organic and inorganic additives and masterbatches in Germany, Austria, Switzerland, Benelux and the Nordic region. “With this new partnership, Velox is extending its existing


Life antimicrobials are available in Europe from Velox www.compoundingworld.com


antimicrobial portfolio and is able to address new target markets,” said Velox Product Manager Stefan Rokitta. The Life antimicrobial products are aimed at applications such as home appliances, sanitary ware and textiles. Velox says the additives offer reliable inhibition of bacteria and odour as well as providing colour and thermal stability. They comply with the EU Biocidal Products Regulation (EU BPR 528/ 2012). � www.velox.com


March 2018 | COMPOUNDING WORLD 5


PHOTO: VELOX


PHOTO: LYONDELLBASELL


PHOTO: A SCHULMAN


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