cleveland, August 12, 2022 /PRNewswire/ — Avient Corporation (NYSE: AVNT), a leading global provider of sustainable and specialty materials solutions, today announced that it has entered into a definitive agreement to sell its distribution business to an affiliate of HIG Capital. $950 million In cash, subject to regulatory approval.
upon April 20, 2022, the company said it is considering the sale of its distribution business in connection with announcing an agreement to acquire DSM’s protective materials business. The company recently completed that process, culminating in today’s announcement.
“As expected, it has been a competitive process with multiple buyers interested in acquiring the distribution business. Robert M. Patterson, Chairman, President and Chief Executive Officer of Avient Corporation. “Ultimately, we selected HIG Capital based on the strength of their proposition of valuing the business at approximately 10x LTM EBITDA and not including contingent financing. We are confident that we will be a great base for our distribution business and a great partner, both as a supplier and as a customer.”
The company has after-tax earnings of about $750 million Proceeds from the sale will be used to pay off near-maturity debt. In the pro forma of the sale of the distribution business and the upcoming acquisition of DSM’s Protective Materials business, the net debt to adjusted EBITDA leverage will be approximately 2.8x at the end of the year.
“The sale of our distribution business and acquisition of DSM Protective Materials represent the next step in a transformation of our specialty that began more than a decade ago,” said Patterson. I look forward to the future as a compounder in a very specialized field.”
In accordance with US GAAP, the company expects its distribution operations to be classified as “held for sale” and reported as discontinued operations in future filings.
The company noted that Moelis & Company LLC and Goldman Sachs acted as financial advisors to Avient. jones day Served as an outside attorney. The sale is subject to the satisfaction of regulatory requirements and other customary closing conditions.
About Avient
Avient Corporation (NYSE: AVNT) provides specialized, sustainable materials solutions that turn customer challenges into opportunities and enable new products for a better world. For example:
- Drives a more circular economy with proprietary technology that makes products more recyclable and allows them to incorporate recycled content
- Lightweight solutions that replace traditional heavy materials such as metal, glass and wood can improve fuel efficiency and reduce carbon footprint across all modes of transport.
- Sustainable Infrastructure Solutions to Improve Energy Efficiency, Renewable Energy, Natural Resource Conservation, and Accessibility of Fiber Optic/5G Networks
Avient employs approximately 8,800 people and is ACC Responsible Care® certified, a founding member of the Alliance to End Plastic Waste, and Great Place to Work® certified. For more information, see: www.avient.com.
Forward-Looking Statements
Statements in this press release that do not report financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Guaranteed future performance. They are based on management’s expectations that are subject to a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed or implied by forward-looking statements. there is. They use words such as “will,” “predict,” “estimate,” “expect,” “plan,” “intend,” “plan,” “believe,” and others of similar meaning in connection with the discussion. use the words and terms of future business 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: availability of previously arranged credit; credit market disruptions, uncertainties or volatility that could adversely affect availability and costs of future credit; currency fluctuations, tariffs and other political, economic and regulatory factors; The impact of risks (including recessions) on international operations. the current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial condition or cash flows; This includes but is not limited to supply chain and logistics issues. the rate of growth in polymer consumption and changes in legislation for plastics in the jurisdictions in which we operate; Fluctuations in raw material prices, quality and supply, and energy prices and supply. Production stoppages or material costs associated with scheduled or unscheduled maintenance programs. Unforeseen developments that may occur regarding unforeseen circumstances such as litigation or environmental issues. our ability to pay regular quarterly cash dividends and the amount and timing of future dividends; Information system failures and cyberattacks. The amounts of cash and non-cash expenses associated with the planned restructuring could differ from our original estimates. material adverse changes in the business supporting the distribution assets being sold; the ability to obtain necessary regulatory or other third-party approvals and consents and otherwise complete the proposed sale of the distribution business; . material adverse changes in the protective materials business proposed for acquisition from Royal DSM (“DSM”); our ability to achieve our strategic and other objectives related to the proposed acquisition of the DSM Protective Materials business and the proposed sale of the distribution business;Other Factors Set forth in the Annual Report on Form 10-K for the Year Ended December 31, 2021 Item 1A, under “Risk Factors”. The above list of factors is not exhaustive.
We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. We encourage you to refer to our reports on Forms 10-Q, 8-K, and 10-K that we provide to the U.S. Securities and Exchange Commission for further disclosures we have made on related subject matter.
Non-GAAP adjustments
The Company does not provide reconciliations of forward-looking non-GAAP financial measures, such as the outlook for net debt to adjusted EBITDA leverage, to the most comparable forward-looking GAAP financial measures. Accurate calculations or estimates of reconciling items and information thereof are not available without reasonable efforts. This is due to the inherent difficulty in predicting the timing and amount of certain items such as restructuring charges, environmental remediation charges, acquisition-related charges and other non-routine charges. Each such adjustment has not yet been made, is outside our control and cannot be reasonably predicted. For the same reason, we cannot comment on the importance of information that is not available.
To access Avient’s news library online, please visit: www.avient.com/news
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