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A. Schulman buys Citadel for $800 million

Staff writer ▼ | March 17, 2015
A. Schulman has executed a definitive agreement to acquire all of the issued and outstanding capital stock of Citadel Plastics Holdings, a portfolio company of HGGC and Charlesbank Capital Partners, for $800 million.
Citadel Plastics Holdings
Acquisition   High-performance plastic compounds
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 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. Due to the timing of the deal in relationship with A. Schulman's fiscal year end of August 31, 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 Company anticipates achieving approximately $25 million in synergies within 18 months of closing, driven primarily by sourcing activities and plant efficiency actions.


 

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