Stock Monitor: A. Schulman Post Earnings Reporting
LONDON, UK / ACCESSWIRE / February 20, 2018 / Active-Investors.com has just released a free research report on LyondellBasell Industries N.V. (NYSE: LYB). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=LYB as the Company's latest news hit the wire. On February 15, 2018, the Company announced that it has signed an agreement to acquire A. Schulman, Inc. (NASDAQ: SHLM). The transaction is valued at $2.25 billion. The acquisition will allow LyondellBasell to expand its current platform and create an advanced polymer solutions business. Register today and get access to over 1,000 Free Research Reports by joining our site below:
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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, LyondellBasell Industries and A. Schulman most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:
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Commenting on the acquisition of A. Schulman, Bob Patel, CEO of LyondellBasell, said:
"The acquisition of A. Schulman is a natural extension of our current platform. 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."
Joseph M. Gingo, Chairman, President and CEO of A. Schulman, added:
"This transaction, which provides our shareholders with a compelling, immediate cash premium, represents the culmination of a robust assessment of strategic alternatives undertaken by our Board of Directors. We are delighted to join forces with LyondellBasell, an industry leader we have admired for many years."
Terms of Acquisition
As per the terms of the agreement signed, LyondellBasell will acquire 100% shares of A. Schulman at $42 per share in cash. The offer price includes assumption of A. Schulman's outstanding debt and other obligations. The agreement also provides for A. Schulman's shareholders to get one contingent value right per share which will entitle them to any recoveries made from the ongoing litigation and government probes related to Schulman's Citadel and Lucent acquisitions. The Boards of Directors of both companies have approved the deal. The transaction is expected to close in Q2 2018 subject to shareholders and regulatory approvals and other closing conditions.
LyondellBasell plans to finance the acquisition using available cash in hand.
Advantages of the acquisition for LyondellBasell
LyondellBasell expects the deal to be accretive to its earnings within one year of closing. The acquisition is also expected to result in run-rate cost synergies of $150 million by implementing its signature measures for cost-cutting, improved productivity as well as steps taken for improving operational, business, and commercial excellence. In the last 12-month period, revenues from the combined business was $4.6 billion and adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) was $446 million.
The Company will be able to double the size of its existing compounding business and establish a platform for future growth by expanding its presence in additional high-growth markets.
The customers of the combined Company will benefit from the complementary strengths and capabilities of both companies as they get access to a full range of innovative products and end-to-end solutions
About A. Schulman Inc.
Akron, Ohio-based A. Schulman is a leading international supplier of high-performance plastic compounds, composites, and resins used in a variety of markets such as packaging, mobility, building & construction, electronics & electrical, agriculture, personal care & hygiene, sports, leisure & home, custom services and others. The Company's principal product lines consist of proprietary and custom-formulated engineered plastic compounds, engineered composites, color concentrates and additives that improve the appearance, performance or ability to process plastics in a number of specialized applications. The Company has 54 manufacturing facilities globally and is supported by a team of approximately 5,100 employees.
About LyondellBasell Industries N.V.
Houston, Texas-based LyondellBasell is one of the largest plastics, chemicals, and refining companies in the world. The Company produces materials and products that are key to advancing solutions to modern challenges like enhancing food safety through lightweight and flexible packaging, protecting the purity of water supplies through stronger and more versatile pipes, and improving the safety, comfort and fuel efficiency of many of the cars and trucks on the road. The Company has over 55 manufacturing sites in 17 countries and its products are sold in over 100 countries across the globe and is supported by a team of over 13,000 employees. It is also the world's largest licensor of polyolefin technologies. In 2018, LyondellBasell was named to Fortune magazine's list of the "World's Most Admired Companies."
Stock Performance Snapshot
February 16, 2018 - At Friday's closing bell, LyondellBasell Industries' stock dropped 1.24%, ending the trading session at $108.61.
Volume traded for the day: 2.76 million shares, which was above the 3-month average volume of 2.06 million shares.
Stock performance in the last three-month – up 5.96%; previous six-month period – up 25.95%; and past twelve-month period – up 17.18%
After last Friday's close, LyondellBasell Industries' market cap was at $43.38 billion.
Price to Earnings (P/E) ratio was at 12.06.
The stock has a dividend yield of 3.31%.
The stock is part of the Basic Materials sector, categorized under the Specialty Chemicals industry.
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