(Adds background, details from statement)
March 16 (Reuters) - Specialty chemical maker A. Schulman Inc said it would buy privately held Citadel Plastics Holdings Inc for $800 million to expand its specialty business that makes moldable plastics.
Citadel Plastics, owned by private equity firms HGGC and Charlesbank Capital Partners, makes thermoplastic polymers and thermoset plastics.
Thermoplastics, which melt when heated and then set to a solid state when cooled, are used in cookware, medical devices, toys and plastic bottles. Thermoset plastics can only be heated and shaped once and are used in electric insulators and fittings, adhesives and laminates.
Citadel operates 21 factories across the world, including 10 thermoplastic factories and seven thermoset factories in the United States and Canada.
“Their product offering ... presents attractive expansion opportunities in other fast-growing sectors such as aerospace, medical, LED lighting and oil & gas,” A. Schulman Chief Executive Bernard Rzepka said in a statement.
A. Schulman, which sells products used in the electronics and construction industries, among others, expects the deal to add to its earnings in the first 12 months of ownership.
The deal is expected to close in the third quarter of 2015.
HSBC Securities (USA) Inc acted as financial adviser to A. Schulman and Squire Patton Boggs LLP was its legal counsel. (Reporting by Anannya Pramanick and Sneha Banerjee in Bengaluru; Editing by Savio D’Souza and Maju Samuel)