Avient Completes Sale of Distribution Business to H.I.G. Capital

Rhea-AI Summary

Avient Corporation (NYSE: AVNT) has finalized the sale of its Distribution business to an affiliate of H.I.G. Capital for $950 million in cash, yielding approximately $750 million after tax. The company aims to utilize the proceeds to pay down near-term debt, aligning with its strategy to push forward with its specialty transformation after acquiring DSM's Protective Materials business. The former Distribution business will operate under the name Formerra.

Positive

• Sale of Distribution business for $950 million enhances financial strength.
• Expected net proceeds of $750 million will be used to reduce debt.

Negative

• None.

CLEVELAND, Nov. 1, 2022 /PRNewswire/ -- Avient Corporation (NYSE: AVNT), a leading global provider of specialized and sustainable material solutions, today announced it has completed the previously announced sale of its Distribution business to an affiliate of H.I.G. Capital for $950 million in cash, with expected after-tax proceeds of approximately $750 million.

"Completing the sale of Distribution enables us to be modestly levered while advancing our specialty transformation with the recent acquisition of DSM's Protective Materials business and the Dyneema brand," said Robert M. Patterson, Chairman, President and Chief Executive Officer, Avient Corporation.  "As previously announced, we intend to use the net proceeds from the Distribution sale to pay down near-term maturing debt."

More details will be provided during Avient's previously scheduled third quarter earnings conference call tomorrow November 2, 2022 at 8 a.m. ET.

H.I.G. Capital announced today that the former Avient Distribution business will now operate as an independent company called Formerra.

About Avient

Avient Corporation (NYSE: AVNT) provides specialized and sustainable material solutions that transform customer challenges into opportunities, bringing new products to life for a better world. Examples include:

• Dyneema®, the world's strongest fiber™, enables unmatched levels of performance and protection for end-use applications, including ballistic personal protection, marine and sustainable infrastructure and outdoor sports
• Unique technologies that improve the recyclability of products and enable recycled content to be incorporated, thus advancing a more circular economy
• Light-weighting solutions that replace heavier traditional materials like metal, glass and wood, which can improve fuel efficiency in all modes of transportation and reduce carbon footprint
• Sustainable infrastructure solutions that increase energy efficiency, renewable energy, natural resource conservation and fiber optic / 5G network accessibility

Avient is certified ACC Responsible Care®, a founding member of the Alliance to End Plastic Waste and certified Great Place to Work®.  For more information, visit www.avient.com/.

Forward-looking Statements 

In this press release, statements that are not reported financial results or other historical information are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements give current expectations or forecasts of future events and are not guarantees of future performance. They are based on management's expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. They use words such as "will," "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning in connection with any discussion of future operating or financial condition, performance and/or sales. Factors that could cause actual results to differ materially from those implied by these forward-looking statements include, but are not limited to: disruptions, uncertainty or volatility in the credit markets that could adversely impact the availability of credit already arranged and the availability and cost of credit in the future; the effect on foreign operations of currency fluctuations, tariffs and other political, economic and regulatory risks, including recessionary conditions; the current and potential future impact of the COVID-19 pandemic on our business, results of operations, financial position or cash flows; changes in polymer consumption growth rates and laws and regulations regarding plastics in jurisdictions where we conduct business; fluctuations in raw material prices, quality and supply, and in energy prices and supply; production outages or material costs associated with scheduled or unscheduled maintenance programs; unanticipated developments that could occur with respect to contingencies such as litigation and environmental matters; our ability to achieve the strategic and other objectives relating to the Avient Protective Materials business; an inability to raise or sustain prices for products or services; our ability to pay regular quarterly cash dividends and the amounts and timing of any future dividends; information systems failures and cyberattacks; amounts for cash and non-cash charges related to restructuring plans that may differ from original estimates, including because of timing changes associated with the underlying actions; and other factors affecting our business beyond our control, including without limitation, changes in the general economy, changes in interest rates, changes in the rate of inflation and any recessionary conditions. The above list of factors is not exhaustive.

Any forward-looking statement speaks only as of the date on which such statement is made, and we undertake no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise. You are advised to consult any further disclosures we make on related subjects in our reports on Form 10-Q, 8-K and 10-K that we provide to the Securities and Exchange Commission.

To access Avient's news library online, please visit www.avient.com/news

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/avient-completes-sale-of-distribution-business-to-hig-capital-301664752.html

SOURCE Avient Corporation

FAQ

What is the significance of Avient's $950 million sale of its Distribution business?

The sale allows Avient to reduce debt and focus on specialty transformation, indicating a strategic shift towards higher-value operations.

When will Avient discuss the financial implications of the Distribution business sale?

Avient will provide more details during its third-quarter earnings conference call on November 2, 2022, at 8 a.m. ET.

What will the former Avient Distribution business be called after the sale?

The former Distribution business will now operate as an independent company named Formerra.