Advent and Lanxess form EUR 3.7bn polymers JV with Royal DSM carve-out

Lanxess will transfer its high-performance materials business (HPM) to the new unit, which will have combined sales of about EUR 3bn and EBITDA of around EUR 500m.  

The carve-out values the DSM engineering materials business (DEM) business at EUR 3.7bn, financed with equity from Advent and external debt, according to a statement from Advent.

Advent will own 60% and Lanxess 40% of the new joint venture. 

The GP will complete the deal via its latest buyout fund, GPE X, which closed last week at USD 25bn. The deal is in line with Advent's strategy, as the investor counts industrials as one of its five core sectors and likes to invest in complex carve-outs, it told Unquote.

The buyers said that the automotive industry is a focus of the new joint venture as polymers can replace metal to reduce weight, reducing CO2 emissions. 

The transaction is expected to close in the first half of 2023.  

In a time of ever-increasing focus on ESG, Advent said that both DEM and HPM are geared towards sustainability, offering bio- and recycled-based alternatives across their product portfolios.

For example, Lanxess recently launched a new high-performance polymer made from 92% sustainable raw materials. It uses "green" cyclohexane from sustainable sources like rapeseed oil or other biomass and is reinforced by weight glass fibres recycled from industrial glass waste.

Company
DEM has around EUR 1.5bn in sales with EUR 334m EBITDA, according to a statement from DSM. It sells high-performance speciality materials into the electronics, electrical and consumer goods sectors. 

DSM said that the disposal allows the group to focus on health, nutrition and bioscience.

People
Advent International - Ronaly Ayles (managing partner).
Lanxess - Matthias Zachert (CEO).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Buyouts
• DACH
• Industrials
• Benelux
• Advent International
• Germany
• Carve-out
• Netherlands