Chemicals giant, LyondellBasell Industries N.V. LYB has agreed to buy A. Schulman, Inc. SHLM in a deal worth $2.25 billion, a move that will create a premier global provider of advanced polymer solutions with extensive geographic reach, leading technologies and a diverse product portfolio. A. Schulman is a leading supplier of high-performance plastic compounds, composites and powders.

Under the deal terms, LyondellBasell will purchase 100% of the common stock of A. Schulman for $42 per share in cash and one contingent value right per share and will also assume outstanding debt and specific other obligations. The company will use cash on hand to fund the buyout.

The planned acquisition has been unanimously approved by the boards of the companies and is subject to regulatory clearances and approval by shareholders of A. Schulman and other customary closing conditions. The acquisition is expected to consummate in second-half 2018.

Shearman & Sterling LLP is serving as LyondellBasell’s legal counsel on the deal while J.P. Morgan and Dyal Co. are serving as financial advisors.

The buyout doubles the size of LyondellBasell’s existing compounding business. It also creates a platform for future growth with reach into additional high-growth markets such as packaging and consumer products, electronics and appliances, building and construction, and agriculture. The acquisition will enable the company to offer a comprehensive range of innovative solutions to its customers.

LyondellBasell expects to capture $150 million in run-rate cost synergies within two years. The buyout is also expected to be accretive to earnings within the first full year following its closure.

LyondellBasell has outperformed the industry it belongs to over the past six months. The company’s shares have rallied around 27.5% over this period, compared with roughly 14.1% gain recorded by the industry.