Industry News

Avient to Purchase DSM’s Protective Materials Business

Published on 2022-04-21. Edited By : SpecialChem

TAGS:   Thermoplastic Composites   

Avient-dsm-acquisition-news Avient Corporation announces that it has entered into an agreement with DSM to purchase the DSM Protective Materials business (including the Dyneema® brand).

The purchase price of 1.485 billion dollars is subject to certain customary adjustments. In conjunction with this proposed acquisition, Avient has also announced that it plans to explore sale options for its Avient distribution business.

Various Applications of Specialty Fiber

The ultra-lightweight specialty fiber is 15 times stronger than steel and is used in demanding applications such as ballistic personal protection, marine and sustainable infrastructure, renewable energy, industrial protection, and outdoor sports.

The foundation of the protective materials business of DSM is the renowned technology and globally admired brand of Dyneema®, the world's strongest Fiber™. "We are thrilled to add the Dyneema® brand and its unique technologies to Avient, further expanding our growing composites portfolio," said Robert M. Patterson, chairman, president and chief executive officer, Avient Corporation.

"For 10 years, we have been building our advanced composites platform by focusing on high-performance materials for applications where failure is not an option. The addition of the Dyneema® portfolio will raise Avient's material offerings to the highest levels on the performance spectrum of composites and engineered fibers," adds Patterson.

Plan to Explore Distribution Business’ Sale

"In conjunction with our intent to acquire Dyneema®, we plan to explore a potential sale of our distribution business," said Mr. Patterson. "This would allow Avient to remain modestly levered at 2.9x adjusted EBITDA while also expanding adjusted EBITDA margins from 12% to 18%, the highest amongst our formulator peers."

Estimated sales and EBITDA for the Dyneema® business in 2022 are approximately $415 million and $130 million, respectively. The business includes six production facilities, four R&D centers and approximately 1,000 employees located around the world.

The acquisition has been approved by the Boards of Directors at both Avient and DSM and is expected to close later this year, subject to the satisfaction of customary closing conditions.

Committed financing for the acquisition is being provided by Morgan Stanley and J.P. Morgan. Jones Day served as outside legal counsel to Avient.

Source: Avient


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