DSM announced sale of Protective Materials business to Avient Corporation
The global purpose-led science-based company, DSM, announced that it has reached an agreement to sell its Protective Materials business to Avient Corporation for an enterprise value of 1.44 billion euros.
The proposed transaction includes all of DSM’s Protective Materials activities, chiefly consisting of Dyneema, the world’s strongest fiber, and follows DSM’s announcement that it was reviewing strategic options in September 2021. The business represented 335 million euros of DSM’s total annual net sales and 105 million euros of DSM’s total Ebitda for 2021. DSM expects to receive 1.33 billion euros net in cash following closing, after transaction costs and capital gains tax.
The transaction will create a business with considerable growth synergies that will benefit customers as well as employees of DSM Protective Materials as Avient helps the business deliver on its outstanding potential. Completion of the transaction, which is subject to the customary conditions and approvals, is expected in the second half of 2022.
“Dyneema’s discovery by DSM scientists in the 1960s has resulted in a great business and a brand that is leading the development of ultra-strong bio-based and circular materials. This agreement is a testimony to the contribution of employees worldwide over the decades. The transaction is strategically attractive for all parties and in line with our accelerated journey towards becoming a focused Health, Nutrition & Bioscience company. We know Avient will be a good owner of this business, for the colleagues working there and for the benefit of customers around the world”, Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of DSM, commented.
“We are very pleased to have reached agreement to acquire DSM Protective Materials and lead this exceptional business into the future. We are eager to continue investing in innovation and sustainable solutions, further accelerating the remarkable impact and possibilities of the business and Dyneema brand. To the DSM Protective Materials employees, we look forward to you joining our team, which is proudly a certified Great Place to Work”, Robert M. Patterson, Chairman, President and Chief Executive Officer, Avient Corporation, added.