SHLM A. Schulman, Inc. (delisted)

By Allison Prang 

LyondellBasell Industries NV plans to buy A. Schulman Inc. for $2.25 billion in a deal it says will help it expand into other businesses.

The London-based plastics and refining firm is offering to buy A. Schulman for $42 a share. Shares in A. Schulman, a plastic compounds supply company based in Ohio, closed at $38.65 Wednesday and rose 9.7% in premarket trading Thursday.

The Wall Street Journal reported in October that A. Schulman was looking at selling itself.

In 2016, the company said its industry was seeing "deteriorating market conditions" and cut its guidance.

It also fired its chief executive and appointed former CEO Joseph Gingo, who was then board chairman, to lead the firm. Mr. Gingo had called the company's performance "less than optimal."

A. Schulman dates back to 1928, when founder Alex Schulman started the company as a rubber brokerage, according to its website.

LyondellBasell Chief Executive Bob Patel said in prepared remarks that the deal will help the company serve other sectors like building and construction and consumer products.

"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," he said.

In the past year, revenue from the companies combined was $4.6 billion. Both companies' boards have approved the deal and it is expected to close in the second half of this year, they said. It still requires approval from A. Schulman shareholders.

Shares of LyondellBasell rose 0.4% premarket but are up 20% in the past year.

Write to Allison Prang at allison.prang@wsj.com

(END) Dow Jones Newswires

February 15, 2018 09:15 ET (14:15 GMT)

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