Smart Molding International 2-2022

11 newsfeed www.smart-molding.com Royal DSM, a global purpose-led sci- ence-based company, today announces that it has reached an agreement to sell its Engineering Materials business to Advent International and LANXESS for an Enterprise Value of €3.85 billion. The proposed transaction marks the conclusion of DSM’s review of strategic options for its two Materials businesses and, following the agreement to sell DSM ProtectiveMaterialstoAvientCorporation in April, the transformation of DSM into a focused science-based leader inHealth, Nutrition & Bioscience. DSM Engineering Materials repre- sented €1.5 billion of DSM’s total annual net sales and €334million of DSM’s total Adjusted EBITDA for 2021. DSMexpects to receive about €3.5 billion net in cash following closing, after transaction costs and capital gains tax. DSM Engineering Materials will be- come part of a newly created joint venture, together with LANXESS’s High Performance Materials business, which will be co-owned by Advent In- ternational (60%) and LANXESS (40%). This will create a new global specialty materials company with the focus and investment that can drive the develop- ment of customer-focused innovation, in particular for industry’s transition to bio-based and circular solutions. The transaction will create a platform for further growth for DSM Engineering Materials and its people. Completion of the transaction, which is subject to the customary conditions and approv- als, is expected in H1, 2023. Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of DSM, commented: “In reviewing possible futures for DSM’s Materials businesses, we have found tremendous new homes where they will be core to each newowner’s growth ambitions. DSM Engineering Materials has been a purpose-led, performance- driven frontrunner thanks to its global talented team since the 1980s. We are certain Advent International and LANXESS will be good new owners in a transaction that is strategically attrac- tive for all parties as we focus DSM on improving people’s health and well-be- ing. DSMhas a track record of successful transformation over the past half centu- ry, and we are well underway in another such moment of strategic change.” Ronald Ayles, Managing Partner at Advent International, said: “We are deeply impressed by the people, per- formance and capabilities of DSM’s Engineering Materials business. We are convinced that, together with LANXESS HPM, the combination of both firms will be in the best position to enact sustainable long-term growth in the engineering materials sector. At Advent International, we are very excited to contribute our deep chemical industry expertise and experience to this joint venture and we are looking forward to working with the outstanding people at DSM Engineering Materials. Together we will create a global engineering ma- terials industry leader.” Matthias Zachert, CEO of LANXESS, commented: “With the new joint ven- ture, we are forging a strong global player in the field of high-performance plastics. The portfolios, value chains and global positioning of the two busi- nesses complement each other per - fectly. With its innovative products, the joint venture will be able to play a key role in shaping future developments - for example in the field of electromo- bility. In Advent, we have a strong and reliable partner with profound experi- ence in the chemical industry and our customer industries.” Advent International will be the majority owner of the newly created joint venture and has extensive invest- ment experience in the global chemi- cal sector with a proven track record in transforming companies from cor- porate carve-outs into industry-leading players. Advent also fosters the growth and market position of portfolio com- panies through further acquisitions and organic investments. DSM www.dsm.com DSM announces sale of Engineering Materials business Picture source: DSM