Material solutions company Avient Corp. will consider a sale of its distribution business as part of an agreement to acquire Royal DSM’s materials segment for nearly $1.5 billion.
Avient officials said selling the distribution operations in conjunction with the deal for DSM Protective Materials would allow the company to remain “modestly levered at 2.9x adjusted EBITDA” while expanding to the highest adjusted earnings margins among its peers.
The company hopes to close on the acquisition later this year, subject to customary closing conditions. The boards of directors of both companies have already approved the deal.
The DSM segment features Dyneema, an ultra-lightweight material branded as the “world’s strongest fiber.” It is used in ballistic protection materials, marine and sustainable infrastructure, renewable energy and industrial protection applications, and outdoor sports.
The acquisition would include six production facilities, four R&D centers and approximately 1,000 employees worldwide.
“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,” Avient President, Chairman and CEO Robert Patterson said in a statement. “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.”