04.20.22
Avient Corporation announced that it has entered into an agreement with Royal DSM to purchase the DSM Protective Materials business (including the Dyneema brand). The purchase price of $1.485 billion is subject to certain customary adjustments. In conjunction with this proposed acqui-sition, Avient has also announced that it plans to explore sale options for its Avient Distribution business.
"We are thrilled to add the Dyneema brand and its unique technologies to Avient, further expand-ing our growing composites portfolio," said Robert M. Patterson, chairman, president and CEO, 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 addi-tion of the Dyneema portfolio will raise Avient's material offerings to the highest levels on the per-formance spectrum of composites and engineered fibers."
The foundation of the protective materials business of DSM is Dyneema®, the World's Strongest Fiber™. The ultra-lightweight specialty fiber is 15 times stronger than steel and is used in demand-ing applications such as ballistic personal protection, marine and sustainable infrastructure, renew-able energy, industrial protection and outdoor sports.
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.
"In conjunction with our intent to acquire Dyneema, we plan to explore a potential sale of our dis-tribution business," said 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."
The acquisition has been approved by the Boards of Directors at both Avient and DSM and is ex-pected to close later this year, subject to the satisfaction of customary closing conditions.
"We are thrilled to add the Dyneema brand and its unique technologies to Avient, further expand-ing our growing composites portfolio," said Robert M. Patterson, chairman, president and CEO, 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 addi-tion of the Dyneema portfolio will raise Avient's material offerings to the highest levels on the per-formance spectrum of composites and engineered fibers."
The foundation of the protective materials business of DSM is Dyneema®, the World's Strongest Fiber™. The ultra-lightweight specialty fiber is 15 times stronger than steel and is used in demand-ing applications such as ballistic personal protection, marine and sustainable infrastructure, renew-able energy, industrial protection and outdoor sports.
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.
"In conjunction with our intent to acquire Dyneema, we plan to explore a potential sale of our dis-tribution business," said 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."
The acquisition has been approved by the Boards of Directors at both Avient and DSM and is ex-pected to close later this year, subject to the satisfaction of customary closing conditions.