A Schulman acquires US-based engineered plastics firm Citadel for $800 mn

A Schulman Inc, the US-based supplier of high-performance plastic compounds, powders and resins, has acquired all of the 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.
 
The West Chicago based 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 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.
 
The deal, which is subject to standard closing conditions, is expected to close in the third quarter of the company's fiscal 2015.
 
"Citadel enhances our thermoplastics platform and will create a more attractive and sustainable business by regionally extending our thermoplastic portfolio in areas such as flame retardants and thermoplastic blends,” said Bernard Rzepka, president and chief executive officer of A Schulman.
 
Established in 2007, Citadel has quickly become an industry leader in multiple attractive, niche applications, including: high performance auto structural, electrical power distribution, downhole oil & gas components, and medical patient transport systems. The company's expertise in material science enables it to deliver customised application-specific solutions with a wide range of performance properties, as well as an unmatched array of technical and formulation capabilities. The company has 1,200 employees and operates 21 manufacturing facilities throughout the world, including 10 thermoplastic facilities in the US and Canada, and 11 thermoset composite plants comprising seven in North America, one in Germany, one in Brazil, and a joint venture consisting of two plants in China.
 
"Citadel’s product offering not only enhances our existing portfolio, but presents attractive expansion opportunities in other fast-growing sectors such as aerospace, medical, LED lighting and oil & gas. Through this acquisition our portfolio becomes more highly specialised, which will enable us to better serve our customers,” Rzepka said.