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Cleveland, August 12, 2022 /PRNewswire/ — Avient Corporation (NYSE: AVNT ), a leading provider of sustainable and unique materials solutions, today announced that it has entered into a definitive agreement to sell its distribution business to HIG Capital Partners. 950 million dollars In cash, subject to regulatory approval.
It’s on April 20, 2022, the company announced that it is exploring the sale of its distribution business in conjunction with announcing an agreement to acquire DSM’s protective materials business. The company recently completed this process and arrived at today’s announcement.
“As expected, there were many buyers interested in acquiring the distribution business, and it was a competitive process,” he said. Robert M. Patterson, Chairman, President and CEO, Avent Corporation. “Ultimately, we selected HIG Capital based on the strength of their proposal, which valued the business at approximately 10x LTM EBITDA and did not include any financing conditions. Avient as both supplier and customer.”
The company’s after-tax income is approx 750 million dollars The proceeds from the sale will be used to pay off debt that will soon accrue. Net debt to adjusted EBITDA leverage will be approximately 2.8x at the end of the year due to the sale of the distribution business and the upcoming acquisition of the DSM protective materials business.
Mr. Patterson added, “The sale of the distribution business and acquisition of DSM’s protective materials represent the next steps in a unique transformation that began over a decade ago. We are excited about our future as a pure play specialty developer of sustainable solutions.”
In accordance with US GAAP, the Company expects that the distribution business will be classified as “held for sale” and will be reported as a discontinued operation in subsequent filings.
The company announced that Moelis & Company LLC and Goldman Sachs served as financial advisors to Avent. Jones Day Served as outside legal counsel. The sale is subject to satisfaction of regulatory requirements and other customary closing conditions.
About Avent
Avent Corporation (NYSE: AVNT) provides unique and sustainable materials solutions that turn customer challenges into opportunities, bringing new products to life for a better world. Examples include:
- Special technologies that improve the recycling of products and allow the integration of recycled content, thereby promoting a more circular economy.
- Replacing heavy traditional materials such as steel, glass and wood with lightweight solutions that improve fuel efficiency and reduce carbon footprints across all modes of transportation
- Sustainable infrastructure solutions that increase energy efficiency, renewable energy, natural resource conservation and fiber optic/5G network access.
Aviant employs approximately 8,800 associates and is ACC Responsible Care® certified, a founding member of the Alliance to Eliminate Plastic Waste, and Great Place to Work® certified. For more information, visit www.avient.com.
Forward-looking statements
This press release does not contain statements of financial results or other historical information. They are “forward-looking statements” within the meaning of the Securities Litigation Reform Act of 1995. Guarantees of future performance. They are based on management’s expectations, which involve numerous business risks and uncertainties, and any actual results may differ materially from those expressed or implied in the forward-looking statements. In connection with any discussion, you will use words such as “will”, “anticipate”, “estimate”, “expect”, “project”, “plan”, “plan”, “believe” and other words of similar meaning. Future operating or financial condition, performance and/or sales. Factors that could cause actual results to differ materially from those expressed in these forward-looking statements include: disruptions, uncertainty or volatility in the credit market that could adversely affect the availability and cost of pre-arranged credit; Future loan Foreign currency fluctuations, tariffs and other political, economic and regulatory risks, including the impact of economic downturns on foreign operations; the current and future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows, including without limitation, any supply chain and logistics issues, changes in polymer consumption growth rates and laws and regulations regarding plastics in the jurisdictions in which we conduct business; fluctuations in raw material prices, quality and availability, and energy prices and availability; production interruptions or material costs related to planned or planned maintenance programs; Unforeseen developments that may occur regarding contingencies such as litigation and environmental issues; our ability to pay regular quarterly cash payments and the amount and timing of future dividends; Information systems failures and cyber attacks; any material adverse changes in the business supporting the distribution assets sold, due to changes in timing related to underlying actions, cash and non-cash charges related to restructuring plans that may differ from original estimates; the ability to obtain necessary regulatory or other third-party approvals and licenses and otherwise consummate the sale of the proposed distribution business; any material adverse changes in the defense equipment business proposed to be acquired from Royal DSM (“DSM”); our ability to achieve planned strategic and other goals with respect to the sales of DSM’s protective materials business and distribution business; and other factors described in our Annual Report on Form 10-K for the year just ended. December 31, 2021 Under item 1A “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. You are advised to consult our additional disclosures on related matters in our reports filed with the Securities and Exchange Commission on Forms 10-Q, 8-K and 10-K.
Non-GAAP Reconciliation
The Company does not present forward-looking non-GAAP financial measures, such as net debt using Adjusted EBITDA, that are most comparable to GAAP financial measures because the Company is unable or unwilling to provide them. Accurate calculations or estimates of reconciliation items and information are not available without reasonable effort. This is due to the difficult nature of predicting the timing and amount of certain items, for example, restructuring costs, environmental improvement costs, acquisition-related costs and other non-routine costs. Each of these adjustments has not yet occurred, is outside the Company’s control and/or cannot be reasonably predicted. For the same reasons, the company cannot resolve the importance of the information that is not available.
To access Aviant’s news library online, please visit www.avient.com/news
Source Avent Corporation
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