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NEWS


Advent/Lanxess to buy DSM ETPs unit; integrates HPM


Lanxess is setting up a joint venture with private equity group Advent International to acquire DSM’s Engineer- ing Materials division – in- cluding all engineering plastics activities. It will also transfer its own High Performance Materials (HPM) engineering plastics business into the new venture. The two companies are to pay €3.7bn for the DSM business, which includes the Akulon PA6/PA66, Stanyl PA46, EcoPaxx PA410, Arnite PET/PBT, Fortii PPA4T, and Xytron PPS brands. It comprises eight production and seven research sites across Europe, the US and Asia and employs 2,100 people. Sales amount to around €1.5bn with an EBITDA margin of near 20%. The Lanxess HPM


business unit includes the Durethan PA and Pocan PBT engineering plastics portfolio, Tepex thermoplas- tic composites, and glass fibre and caprolactam precursor production. Centred on the company’s site at Antwerp in Belgium, the business includes 1,900 employees, 10 production sites, and seven research


Above: Lanxess HPM ETPs business will be combined with DSM’s in new venture


Right: Lanxess CEO Matthias Zachert: “Forging a strong player…in high performance polymers”


facilities globally. It gener- ates sales of around €1.5bn with EBITDA pre-exception- als at around €21m. The combination of the DSM and HPM businesses will create a global engi- neering plastics operation with sales of around €3bn. Advent will hold a minimum 60% stake in the venture. Lanxess will receive an initial payment of more than €1.1bn as well as its equity stake of up to 40% and will have the option to sell its share to Advent at the same


valuation after three years. The deal is expected to close, subject to customary conditions and approvals, in H1 of next year. “With the new joint


venture, we are forging a strong global player in the field of high-performance polymers. The portfolios, value chains and global positioning of the two businesses complement each other perfectly,” said Lanxess CEO Matthias Zachert. “The combination of


Lanxess’s High Performance Materials and DSM Engi- neering Materials creates a strong platform and brings together extensive exper- tise, resulting in the best opportunities for employees and more value for custom- ers,” said Ronald Ayles, Man- aging Partner at Advent. The two companies said the automotive industry is a focus sector for the new joint venture, with e-mobility a key target, as well as E&E. DSM announced plans to sell its materials businesses to focus on health care, animal nutrition and food and beverage back in September last year. It sold its Protective Materials unit, which includes the Dynee- ma UHMWPE business, to Avient in April this year. The Lanxess/Advent deal is the second big ownership change in the engineering plastics market this year. In February, Celanese agreed to buy most of Dupont’s Mobility & Materials business. That $11bn deal includes the Zytel PA, Rynite PET, Crastin PBT and Hytrel TPE products (but not the Delrin POM grades). �www.dsm.com �www.lanxess.com


Valtris Specialty Chemicals changes hands


US-based HIG Capital has agreed to sell Valtris Speciality Chemicals, which it has owned since its carve-out from Ferro in 2014, to SK Capital Partners, also based in the US. The transaction is expected to close in Q3 2022.


www.compoundingworld.com


Valtris makes speciality polymer additives and chemicals for a diverse set of end markets, including plasticis- ers and heat stabilisers for plastics. Headquartered at Independence in Ohio, US, the company has nine


manufacturing facilities globally. During HIG’s ownership, Valtris


acquired Akcros Chemicals and multiple Ineos business units in France, Belgium and the Netherlands. �www.valtris.com


June 2022 | COMPOUNDING WORLD 5


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