Citadel Plastics Holdings, Inc. ("Citadel" or "the Company"), a leading global provider of thermoplastic and engineered composite compounds, 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.

 

About Citadel Plastics Holdings, Inc.

HGGC of Palo Alto, California, and Boston-based Charlesbank Capital Partners are the primary owners of Citadel. Citadel is a leading provider of custom material solutions including both engineered composites and thermoplastics compounds. Citadel’s end markets include transportation, industrial & construction, consumer, electrical, energy and healthcare & safety. Formed in 2007 and built through a series of cornerstone and tuck-in acquisitions, Citadel’s customer-engineered solutions, stable margin profile, blue-chip customer base and global operational excellence provide attractive opportunities for future growth. Citadel is headquartered in West Chicago, and has a global workforce spread across twenty-one facilities in six countries. For more information, visit www.citadelplastics.com.

 

About HGGC

HGGC is a leading middle-market private equity firm with over $2.4 billion in cumulative capital commitments. Based in Palo Alto, Calif., HGGC is distinguished by its “Advantaged Investing” model that enables the firm to source and acquire scalable businesses at attractive multiples through partnerships with management teams, founders and sponsors who reinvest in deals alongside HGGC, creating a strong alignment of interests. Over its history, HGGC has completed platform investments, add-on acquisitions, recapitalizations and liquidity events with an aggregate transaction value of nearly $10 billion, representing more than 45 transactions. More information is available at www.hggc.com.

 

About Charlesbank Capital Partners

Based in Boston and New York, Charlesbank is a middle-market private equity investment firm managing more than $3 billion of capital. Charlesbank focuses on management-led buyouts and growth capital financings, typically investing $50 million to $150 million per transaction in companies with enterprise values of $100 million to $750 million. The firm seeks to partner with strong management teams to build companies with sustainable competitive advantages and excellent prospects for growth. For more information, visit www.charlesbank.com.