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Avient to acquire DSM Protective Materials business for US$1.485 billion
Source:Adsale Plastics Network    Editor:JK    Date:21.Apr.2022

Avient Corporation, a leading provider of specialized and sustainable material solutions, has entered into an agreement with Royal DSM to purchase the DSM Protective Materials business, including the Dyneema brand.

 

The purchase price of US$1.485 billion 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.

 

"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. "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."

 

The foundation of the protective materials business of DSM is the renowned technology and globally admired brand of Dyneema, one of the world's strongest fibers.


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Avient announces agreement to acquire DSM Protective Materials (Dyneema) and plans to explore sale of distribution.


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. 

 

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

 

Excluding intangible amortization, the acquisition will be immediately accretive to EPS, adding approximately US$0.35 per share on a pro forma basis for 2022. Further, Avient's composites platform with the Dyneema business will represent over 50% of the company's Specialty Engineered Materials segment sales.

 

"In conjunction with our intent to acquire Dyneema, we plan to explore a potential sale of our distribution business," said Robert M. 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 expected to close later this year, subject to the satisfaction of customary closing conditions.

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