Citadel Plastics to be Acquired by A. Schulman
WEST CHICAGO, Ill. — March 16, 2015 — Citadel Plastics Holdings, Inc. ("Citadel" or "the Company"), a leading global provider of thermoplastic and engineered composite compounds, today announced that its owners, private equity firms HGGC and Charlesbank Capital Partners, have entered into a definitive agreement to sell the Company to global plastics supplier A. Schulman (NASDAQ: SHLM). The transaction is expected to close in the second quarter of 2015.
Citadel, acquired by HGGC and Charlesbank in 2012, is a West Chicago, Ill.-based provider of comprehensive materials solutions operating 21 production facilities in North America, Europe, Asia and Latin America. The Company offers a broad portfolio of proprietary compounds to diverse blue-chip customers spanning multiple industries including transportation, industrial & construction, consumer, electrical, energy and healthcare & safety.
During HGGC and Charlesbank's ownership, and in partnership with Citadel management, the Company has significantly expanded its capabilities, geographic reach and customer base through both organic growth and strategic acquisitions. Citadel added Lucent Polymers in 2013 and The Composites Group ("TCG") in late 2014. The combination of these businesses accelerated the evolution of Citadel into an industry leader with more than 1,300 customers and over 2,000 active products that have grown revenues 70 percent since the initial investment.
"The management team and I are extremely proud of the tremendous growth and expansion that has taken place at Citadel over the past three years," said Mike Huff, CEO of Citadel. "Working closely with HGGC and Charlesbank, we have built a much stronger business that is well-positioned for continued success in partnership with A. Schulman.""
KeyBanc Capital Markets, Inc. is financial advisor to Citadel. Kirkland & Ellis LLP is legal counsel to Citadel.
Citadel, Quantum Composites to Exhibit at JEC Europe
Quantum recognized as Rapid Composites' partner for 2015 Innovation Award
BAY CITY, MI — March 3, 2015 — Quantum Composites, part of Citadel Plastics Holdings, Inc., is exhibiting at next week's JEC Europe Composites Show and Conference, scheduled for March 10 – 12, at Porte de Versailles in Paris. This year marks the 50th meeting of JEC Europe, considered the leading tradeshow and conference for the composites industry worldwide.
The Citadel and Quantum Composites exhibit is booth C21, located in Pavilion 7.2.
Quantum Composites' customer Rapid Composites earned the JEC Europe 2015 Innovation Award in the UAV category for its rugged amphibious tri-copter/quad-configurable UAV drone. The drone features three of Quantum's carbon and glass fiber Advanced Molding Compounds®—AMC® 8590, AMC® 8593 and QC 8560.
"We wanted a product that could be man-portable with minimal parts for easy assembly and an unrivaled versatility; rugged enough to require no transit case; capable of carrying a 7 kg maximum payload; and that could perform amphibious take-off and landing as well as fly for more than 30 minutes," said Alan Taylor, president, Rapid Composites. "Quantum Composites and its engineered structural composites materials were instrumental in helping us to achieve our goals."
Quantum is named as Rapid Composites' partner and will feature one of these award-winning drones at its exhibit.
"We are honored to share in Rapid Composites' success," said Wisdom Dzotsi, vice president and general manager, Quantum Composites. "Citadel and Quantum welcome the chance to partner with our customers and deliver the customized solutions they need. Working with Alan and his team has proven to be one such partnership."
The JEC Innovation Awards ceremony to formally honor recipients will be held on Tuesday, March 10, at 5 pm, at the Paris Expo Porte de Versailles, hall 7.3, at the Agora. Exhibitors and visitors are invited to attend.
Click here for a full list of this year's JEC Europe Innovation Awards.
Citadel Plastics to Host Grand Opening for New China Facility
Site to support customers, expand reach
WEST CHICAGO, IL — January 13, 2015 —Citadel Plastics Holdings, Inc., a leading global provider of thermoplastic and engineered composite compounds, has opened a new manufacturing facility in Changshu, a city in the Jiangsu Province of China, as part of a joint venture with EMEI Group.
Citadel will hold a grand opening celebration at the Changshu plant – its 20th facility worldwide – on Jan. 20, 2015. This site will better serve Citadel's current automotive and electrical customers in the northern region outside Shanghai, while allowing the company to expand its reach.
"The new Changshu site is a prime opportunity for Citadel to continue our successful partnership with EMEI, provide improved local customer support and response, and expand our Engineered Composites footprint in China," said Mike Huff, CEO of Citadel. The company's Dongguan facility, located in southern China outside Hong Kong, opened in 1998.
The Changshu site, known locally as BMC Composite Materials (Changshu) Co. Ltd., will have 25 employees in place this year. It has begun production of bulk molding compound (BMC), part of Citadel's legacy composites business.
"Location is key, whether you're buying a home or building a business," said Kevin Andrews, President, Citadel Engineered Composites. "Simply put, we can better service our customers by being closer to them geographically. We want Citadel's compounds to be both available and accessible in the region."
The new plant is 40,000 ft2 (approximately 3,700 m2) and can expand its manufacturing capabilities to include sheet molding compound (SMC) and thermoplastics to meet future market needs.
"We welcome this opportunity to collaborate with Citadel once again and are looking forward to getting the Changshu facility operating at full production," said Johnny Lo, Director, EMEI Group.
Citadel's Dongguan plant employs 60 and currently manufactures BMC for the appliance, electrical and automotive markets.