Specialty chemicals company Lanxess has announced that it has entered into a joint venture with Advent International for high-performance engineering polymers.
The two companies also signed an agreement to acquire the DSM Engineering Materials (DEM) business at a purchase price of around €3.7 billion from Dutch Group Royal DSM, which will become part of the new joint venture, a press release from the chemical company said.
Additionally, the company will contribute its high-performance materials business unit, which represents annual sales of around €1.5 billion with EBITDA pre exceptionals of around €210 million to the joint venture, the release added.
Advent will hold at least 60% in the joint venture, while Lanxess will receive an initial payment of at least €1.1 billion and a stake of up to 40% in the future joint venture.
Matthias Zachert, CEO, Lanxess, said that the company will once again become significantly less dependent on economic fluctuations. In addition, it will strengthen its balance sheet with the proceeds from the transaction and gain new scope for the further development of our Group.”
Ronald Ayles, Managing Partner, Advent International, said, “Together we plan to bring the experience, deep sector know-how, and financial resources to make the joint venture a global success story for everyone involved.”