Citadel purchases Lucent Polymers

By Frank Esposito
Senior Staff Reporter

Published: December 6, 2013 1:27 pm ET
Updated: December 6, 2013 3:36 pm ET

Image By: Plastics News Citadel CEO Michael Huff

Related to this story

Topics Materials, Mergers & Acquisitions, Materials Suppliers

Citadel Plastic Holdings Inc. sure likes spending its money in Evansville, Ind.

Officials with West Chicago, Ill.-based Citadel announced on Dec. 6 that the firm has acquired Lucent Polymers of Evansville for an undisclosed price. It’s the third time in six years that Citadel has acquired an Evansville-based materials firm. Previously, Citadel had purchased Matrixx Group and QTR Inc.

Lucent employs 250 at four locations in the Evansville area, making compounds mostly based on engineering resins but also doing some work in polyolefins.

The firm has annual sales of $80 million to $100 million, selling into numerous markets including automotive, appliance, electrical, packaging and sports and leisure.

Lucent “is a great fit for Citadel,” Citadel CEO Mike Huff said in a Dec. 6 phone interview. “Lucent diversifies our technology and moves us more toward engineering thermoplastic materials from our polyolefins base.”

The firm also has “a good position” in sustainable feedstocks, he added.

Citadel is buying Lucent from private equity firm River Associates based in Chattanooga, Tenn.

Lucent was founded in 1997 by compounding veteran Tim Martin. Lucent’s existing management team is expected to remain in place. Huff said that Lucent’s sales growth for 2013 is expected to be in “the high single-digits.”

Lucent operates 15 extrusion lines, most of which are single-screw.

Its facilities cover a total of 520,000 square feet.

Citadel and Lucent hadn’t competed versus each other very much, Huff said, adding that the move gets Citadel into markets for packaging and sports and leisure where it had not much participated.

The acquisition is Citadel’s seventh overall but its first since 2010. The firm was founded in 2007 by private equity firm Wind Point Partners of Chicago and was sold in early 2012 to HGGC, a private equity firm based in Palo Alto, Calif.

HGGC was co-founded by Plastics Hall of Famer Jon Huntsman.

NFL Hall of Fame quarterback Steve Young also is a founding partner in the firm.

Looking ahead, Huff said Citadel is looking to make more acquisitions and is expecting sales growth of triple GDP levels. Following the Lucent deal, Citadel will have annual sales of about $400 million.

Other Citadel units are growing as well.

Matrixx will add a new twin-screw extrusion line at one of its Evansville plants in early 2014.

Huff said the line is needed to handle general business growth, with an emphasis on flame-retardant compounds.

Citadel’s Bulk Molding Compounds Inc. unit also will open its second Chinese plant by the end of the year.

West Chicago, Ill.-based BMCI has operated a plant in Dongguan since 2005 and now will have a plant in the Shanghai area.


Comments

Citadel purchases Lucent Polymers

By Frank Esposito
Senior Staff Reporter

Published: December 6, 2013 1:27 pm ET
Updated: December 6, 2013 3:36 pm ET

Post Your Comments


Back to story


More stories

Image

Citadel opens second compounding facility in China, near Shanghai

January 27, 2015 3:22 pm ET

Citadel Plastics Inc., the American manufacturer of thermoplastic and engineered composite compounds, has opened its second facility in China,...    More

Image

Sales, profit fall at DuPont

January 27, 2015 3:13 pm ET

Materials giant DuPont Co. will use almost all of the proceeds from an upcoming spinoff — one that includes its fluoropolymer and titanium...    More

Image

A. Schulman, Citadel continue buying blitz

January 27, 2015 11:32 am ET

A. Schulman Inc. and Citadel Plastics Inc. — two deal-happy materials firms — were at it again in the second half of 2014.    More

Image

It's becoming a seller's market for plastics firms

January 27, 2015 11:37 am ET

The pace of plastics mergers and acquisitions activity slowed a bit in the second half of 2014 — but market watchers have high expectations for ...    More

Image

Materials market sees more deals

January 27, 2015 11:26 am ET

Plastics materials deals showed modest growth in 2014, increasing 6 percent vs. their 2013 total.    More

Market Reports

Plastics in Automotive: Innovation & Emerging Trends

This special report newly released by PN and sponsored by The Conair Group examines current trends in the use of plastics in automotive, materials innovations and the changing landscape. It includes a review of legislative/regulatory activity impacting vehicle development and lightweighting, market opportunities & challenges for mold and toolmakers, innovative design strategies being implemented by major OEMs and suppliers, as well as a review of key indicators in Canada, Mexico, Brazil and China.

Learn more

Plastics Recycling Trends in North America

This report is a review and analysis of the North American Plastics Recycling Industry, including key trends and statistics based on 2013 performance. We examine market environment factors, regulatory issues, industry challenges, key drivers and emerging trends in post-consumer and post-industrial recycling.

Learn more

Injection Molding Market Analysis & Processor Rankings

Plastics News BUNDLED package contains our in-depth Market Analysis of the Injection Molding segment. You will gain keen insight on current trends and our economic outlook.

As a BONUS this includes PN's updated 2014 database of North American Injection Molders RANKED by sales volume. Sort, merge, mail & prospect by end market, materials processed, region, # of plants and more.

Learn more

Upcoming Plastics News Events

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

June 2, 2015 - June 3, 2015Plastics Financial Summit - Chicago 2015

September 16, 2015 - September 18, 2015Plastics Caps & Closures - September 2015

More Events