CLEVELAND — April 20, 2022 — Avient Corp., a provider of specialized and sustainable material solutions, today announced that it has entered into an agreement with Royal DSM (DSM) to purchase the DSM Protective Materials business — including the Dyneema® brand/the Dyneema business. The purchase price of $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 CEO, Avient. “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.”
The foundation of the protective materials business of DSM is the renowned technology and brand of Dyneema, the World’s Strongest 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. 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.
Excluding intangible amortization, the acquisition will be immediately accretive to EPS, adding approximately $0.35 per share on a pro forma basis for 2022. Further, Avient’s composites platform with the Dyneema business will represent more than 50 percent 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,” Patterson said. “This would allow Avient to remain modestly levered at 2.9x adjusted EBITDA while also expanding adjusted EBITDA margins from 12 percent to 18 percent, 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.
Committed financing for the acquisition is being provided by Morgan Stanley and J.P. Morgan. Jones Day served as outside legal counsel to Avient.
Posted: April 20, 2022
Source: Avient Corp.