Avient selling distribution business to H.I.G. Capital
The sale is in connection with Avient's recent agreement to acquire the protective materials business of DSM.
Material supplier Avient Corp. is selling its distribution business to an affiliate of private equity firm H.I.G. Capital for US$950 million in cash.
On April 20, 2022, the Avon Lake, Ohio-based company, formerly known as PolyOne, announced it was exploring a sale of its distribution business, in connection with announcing an agreement to acquire the protective materials business of DSM, which the company recently completed.
“As expected, there were multiple buyers interested in acquiring the distribution business, and it was a competitive process,” Avient chairman, president and CEO Robert Patterson said in an Aug. 12 news release. “Ultimately, we selected H.I.G. Capital based on the strength of their proposal, which values the business at approximately 10 times [last 12 months] EBITDA and includes no financing contingencies.”
“The sale of the distribution business and acquisition of DSM protective materials represent the next steps in our specialty transformation that began over a decade ago,” Patterson added.