CLEVELAND, April 20, 2022 /PRNewswire/ -- Avient
Corporation (NYSE: AVNT), a leading 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 Chief Executive Officer,
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
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®, 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 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 Mr.
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.
Committed financing for the acquisition is being provided by
Morgan Stanley and J.P. Morgan. Jones
Day served as outside legal counsel to Avient.
Avient will host a webcast on Wednesday,
April 20, 2022 at 9:00 a.m.
EST to discuss the key highlights of the expected
acquisition of the Dyneema business as well as its first quarter
2022 financial results.
Webcast Details
Avient will host a webcast on Wednesday,
April 20, 2022 at 9:00 a.m.
EST. The webcast can be viewed at avient.com/investors, or
by clicking here: https://edge.media-server.com/mmc/p/edkwvu9r. To
participate in the audio-only portion of the call, dial
1-844-835-7433 (domestic) or 1-914-495-8589 (international) and
provide conference ID number 4774915. There will be a question and
answer session following the company's presentation and prepared
remarks. A recording of the webcast and the slide presentation will
be available at avient.com/investors. In addition, a recording of
the audio will be available for one week, beginning at noon EST on
Wednesday, April 20, 2022. To listen
to this recording, dial 1-855-859-2056 (domestic) or 1-404-537-3406
(international) and provide conference ID number 4774915.
This webcast replaces the previously communicated earnings
webcast date that was originally scheduled to be held on
Wednesday, April 27.
About Avient
Avient Corporation (NYSE: AVNT), with 2021 revenues of
$4.8 billion, provides specialized
and sustainable material solutions that transform customer
challenges into opportunities, bringing new products to life for a
better world. Examples include:
- Unique technologies that improve the recyclability of products
and enable recycled content to be incorporated, thus advancing a
more circular economy
- Light-weighting solutions that replace heavier traditional
materials like metal, glass and wood, which can improve fuel
efficiency in all modes of transportation and reduce carbon
footprint
- Sustainable infrastructure solutions that increase energy
efficiency, renewable energy, natural resource conservation and
fiber optic / 5G network accessibility
Avient employs approximately 8,700 associates and is certified
ACC Responsible Care®, a founding member of the Alliance to End
Plastic Waste and certified Great Place to Work®. For more
information, visit www.avient.com.
Forward-looking
Statements
In this press release, statements that are not reported
financial results or other historical information are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements give current expectations or forecasts of future events
and are not guarantees of future performance. They are based on
management's expectations that involve a number of business risks
and uncertainties, any of which could cause actual results to
differ materially from those expressed in or implied by the
forward-looking statements. They use words such as "will,"
"anticipate," "estimate," "expect," "project," "intend," "plan,"
"believe," and other words and terms of similar meaning in
connection with any discussion of future operating or financial
condition, performance and/or sales. Factors that could cause
actual results to differ materially from those implied by these
forward-looking statements include, but are not limited to: the
time required to consummate the acquisition of the Dyneema
business; the satisfaction or waiver of conditions in the purchase
agreement; completion of the consultation process with the relevant
Dutch works council; the ability to obtain required regulatory or
other third-party approvals and consents and otherwise consummate
the proposed acquisition of the Dyneema business; our ability to
achieve the strategic and other objectives relating to the proposed
acquisition of the Dyneema business and possible sale of the
distribution business; disruptions, uncertainty or volatility in
the credit markets that could adversely impact the availability of
credit already arranged and the availability and cost of credit in
the future; the effect on foreign operations of currency
fluctuations, tariffs and other political, economic and regulatory
risks; the current and potential future impact of the COVID-19
pandemic on our business, results of operations, financial position
or cash flows; changes in polymer consumption growth rates and laws
and regulations regarding plastics in jurisdictions where we
conduct business; fluctuations in raw material prices, quality and
supply, and in energy prices and supply; production outages or
material costs associated with scheduled or unscheduled maintenance
programs; unanticipated developments that could occur with respect
to contingencies such as litigation and environmental matters; an
inability to raise or sustain prices for products or services;
information systems failures and cyberattacks; and other factors
affecting our business beyond our control, including without
limitation, changes in the general economy, changes in interest
rates and changes in the rate of inflation. The above list of
factors is not exhaustive.
We undertake no obligation to publicly update forward-looking
statements, whether as a result of new information, future events
or otherwise. You are advised to consult any further disclosures we
make on related subjects in our reports on Form 10-Q, 8-K and 10-K
that we provide to the Securities and Exchange Commission.
Non-GAAP Financial
Measures
The Company uses both GAAP (generally accepted accounting
principles) and non-GAAP financial measures. The non-GAAP financial
measures include estimated 2022 Dyneema business and Composites
Platform pro forma EBITDA. Avient's chief operating decision maker
uses these financial measures to monitor and evaluate the ongoing
performance of the Company and each business segment and to
allocate resources.
The Company does not provide reconciliations of forward-looking
non-GAAP financial measures, such as outlook for adjusted EBITDA,
to the most comparable GAAP financial measures on a forward-looking
basis because the Company is unable to provide a meaningful or
accurate calculation or estimation of reconciling items and the
information is not available without unreasonable effort. This is
due to the inherent difficulty of forecasting the timing and amount
of certain items, such as, but not limited to, restructuring costs,
environmental remediation costs, acquisition related costs, and
other non-routine costs. Each of such adjustments has not yet
occurred, are out of the Company's control and/or cannot be
reasonably predicted. For the same reasons, the Company is unable
to address the probable significance of the unavailable
information.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/avient-announces-agreement-to-acquire-dsm-protective-materials-dyneema-and-plans-to-explore-sale-of-distribution-301528666.html
SOURCE Avient Corporation