Advent 7 Lanxess To Form JV For High Performance Plastics

LANXESS and Advent International Establish JV for High-Performance Engineering Polymers

13-Jun-22

LANXESS and Advent will acquire Engineering Materials business from DSM for a purchase price of around EUR 3.7 billion
LANXESS will transfer High Performance Materials business into joint venture. It will receive a payment of at least EUR 1.1 billion and a stake of up to 40 percent in the joint venture

Specialty chemicals company LANXESS and Advent International (“Advent”), one of the largest and most experienced global private equity investors with a well established track record in chemicals investings, are establishing a joint venture for high-performance engineering polymers. The two companies have signed an agreement to acquire the DSM Engineering Materials business (DEM) from Dutch group Royal DSM, which will become part of the new joint venture. The purchase price is around EUR 3.7 billion and will be financed by the joint venture via equity from Advent and external debt. The business represents sales of around EUR 1.5 billion. DEM is one of the leading global suppliers in high-performance specialty materials that address key market needs in electronics, electrical and consumer goods.

In addition, LANXESS will contribute its High Performance Materials (HPM) business unit to the joint venture. HPM is one of the leading suppliers of high-performance polymers, which are used primarily in the automotive industry. The business represents annual sales of around EUR 1.5 billion. Advent will hold at least 60 percent in the joint venture. LANXESS will receive an initial payment of at least EUR 1.1 billion and a stake of up to 40 percent in the future joint venture. Following the transfer to the joint venture, the HPM business will no longer be fully consolidated at LANXESS, but will be included in the consolidated financial statements at equity.