US plastics compounder and distributor A. Schulman (Akron, Ohio; www.aschulman.com) is exploring a sale, according to the Wall Street Journal. Citibank, which has been assisting the company with its budget planning and strategic realignment, is working on the sales process, which is in its early stages, the newspaper reports.

The company declined to comment. “As a matter of policy, A. Schulman does not comment on market rumours or speculation,” a spokeswoman wrote in an email to Plasteurope.com.

A. Schulman carries a debt burden of around USD 880m (per end of May 2017) and is also battered by an outstanding lawsuit in relation to its acquisition of composite specialist Citadel Plastics (West Chicago, Illinois / USA; www.citadelplastics.com).

Following the acquisition of Citadel, A. Schulman's operating income declined by USD 12m to USD 70m in 2014/2015. In 2016, profit warnings followed for the 2015/2016 financial year, which eventually cost former CEO Bernard Rzepka his job. The supervisory board re-appointed Joseph Gingo, who had managed the company for seven years until the end of 2014 (see Plasteurope.com of 19.08.2016). Gingo issued another profit warning for the current fiscal year in July (see Plasteurope.com of 27.07.2017), mainly as a result of reduced margins in its European businesses. The company generates almost half of its sales in Europe, the Middle East and Africa, with North America accounting for 28%.