DSM says it has reached an agreement to sell its protective materials business, part of the company’s materials division, to Avient Corporation (Avon Lake, Ohio), a specialty polymers maker, for an enterprise value of €1.44 billion ($1.56 billion). The business accounted for €335 million of DSM’s total net sales in 2021 and €105 million of its EBITDA, the company says. DSM expects to receive €1.33 billion net in cash following closing, after transaction costs, and capital gains tax. Transaction is subject to customary conditions and approvals, and expected to be completed in the second half of the year.
The agreement follows the company’s announcement in September 2021 that it would review options for its materials division, including a possible sale, as part of plans to focus the company on health, nutrition, and biosciences. Meanwhile, in March, reports had re-emerged in German newspapers that private equity firm Advent International was working with Lanxess on a possible bid to acquire DSM’s engineering plastics business, the other business unit of DSM materials division.
The transaction will create a business with considerable growth synergies that will benefit customers as well as employees of DSM protective materials, the company says. “The transaction is strategically attractive for all parties and in line with our accelerated journey towards becoming a focused health, nutrition & bioscience company,” say Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of DSM.
DSM says it will provide re-stated figures for its materials cluster with its first quarter results in May 2022.
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