LyondellBasell Industries NV agreed to acquire A. Schulman Inc. for a total consideration of $2.25 billion.
Under the terms of the transaction, the commodity chemicals manufacturer will purchase all of A. Schulman's common stock for $42 per share in cash and one contingent value right per share and will assume outstanding debt and certain other obligations. The target is a U.S.-based chemicals, plastics and refining company.
LyondellBasell expects to hit $150 million in run-rate cost synergies. The acquisition is expected to boost earnings within the first full year after closing.
The combined businesses had revenues of $4.6 billion and adjusted EBITDA of $446 million over the last 12 months.
"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.
The deal is expected to close in the second half of 2018.