Avient Corporation entered into agreement to acquire Protective Materials business of Koninklijke DSM N.V. for €1.4 billion.
April 19, 2022
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Avient Corporation (NYSE:AVNT) entered into a signing protocol agreement to acquire Protective Materials business of Koninklijke DSM N.V. (ENXTAM:DSM) for €1.4 billion on April 19, 2022. Avient Corporation entered into a sale and purchase agreement to acquire Protective Materials business of Koninklijke DSM N.V. on June 23, 2022. The proposed transaction includes all of DSM's Protective Materials activities, chiefly consisting of Dyneema®, the world's strongest fiber. In conjunction with this proposed acquisition, Avient has also announced that it plans to explore sale options for its Avient Distribution business. DSM expects to receive €1.33 billion net in cash following closing, after transaction costs and capital gains tax. Committed financing for the acquisition is being provided by Morgan Stanley and J.P. Morgan. Commitment Parties will commit to provide Avient with a €593.2 million senior secured term loan facility and a €834.2 million senior unsecured bridge loan. Avient has finalized the debt financing of €715.58 million in aggregate principal amount of senior notes due 2030, bearing interest at an annual rate of 7.125% to fund its pending acquisition of Protective Materials business and the closing of the notes offering and term loan are expected to occur in August 2022, subject to customary closing conditions.
The business represented €335 million of DSM's total annual net sales and €105 million of DSM's total EBITDA for 2021. The acquisition has been approved by the Boards of Directors at both Avient and DSM. Completion of the transaction, which is subject to the customary conditions and regulatory approvals, including competent Governmental Authority. The acquisition will be immediately accretive to EPS, adding approximately €0.32 per share ($0.35 per share) on a pro forma basis for 2022. James Dougherty and Ben Stulberg of Jones Day acted as legal advisors for Avient. JPMorgan Chase & Co. acted as financial advisor to Koninklijke DSM N.V. Centerview Partners LLC acted as financial advisor to Koninklijke DSM N.V. Clifford Chance LLP acted as legal advisor to Koninklijke. Morgan Stanley (NYSE:MS) acted as financial advisor to Avient Corporation.
Avient Corporation is a premier formulator of specialized and sustainable materials solutions. The Companyâs products include specialty engineered materials, performance fibers, advanced composites and color and additive systems. The Company operates through two segments: Color, Additives and Inks and Specialty Engineered Materials. The Color, Additives, and Inks segment is a formulator of specialized custom color and additive concentrates in solid and liquid form for thermoplastics, dispersions for thermosets, as well as specialty inks. Color and additive solutions include a range of colors, special effects and performance enhancing and sustainable solutions. It also provides custom-formulated liquid systems. The Specialty Engineered Materials segment is a formulator of specialty and sustainable polymer formulations, services and solutions for designers, assemblers, and processors of thermoplastic materials across variety of markets and end-use applications.
AVIENT CORPORATION 
