Avient Corporation - AVNT STOCK NEWS

Avient Corporation (NYSE: AVNT) reported a third quarter 2022 GAAP EPS of ($0.30), a decline from $0.37 in the same period last year. This included special items impacting EPS by ($0.75) due to acquisition costs from the DSM Protective Materials purchase. Adjusted EPS was $0.59, slightly below the previous year’s $0.61. The company revised its full year adjusted EPS guidance to $2.60, citing weaker global demand due to economic conditions and COVID lockdowns in China. Proceeds from the sale of the Distribution business are being used to reduce debt.

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.

Avient Corporation (NYSE: AVNT) has declared a quarterly cash dividend of $0.2475 per share, marking the twelfth consecutive annual increase. The dividend will be paid on January 6, 2023, to stockholders of record on December 16, 2022. This increase elevates the annual dividend from $0.95 to $0.99 per share. The company has achieved a compounded annual growth rate of 16% since initiating its dividend in 2011, attributed to its transformation towards specialty applications in high-growth markets while navigating macroeconomic uncertainties.

Avient Corporation (NYSE: AVNT) will release its third quarter 2022 earnings on November 2, 2022, before market opening. A webcast presentation will follow at 8:00 a.m. Eastern Time, allowing investors to gain insights into the company’s performance. Participants can pre-register for the conference call to receive the necessary dial-in information. The recorded webcast and slide presentation will be available for one year post-call. Avient focuses on specialized sustainable materials, enhancing recyclability and energy efficiency.

Avient Corporation (NYSE: AVNT) announced key updates regarding its third quarter and full year 2022 forecast. The company completed the acquisition of DSM's Protective Materials business, including the Dyneema brand, on September 1, while preparing to divest its Distribution segment, expected to conclude in Q4. However, it has lowered its adjusted EPS guidance by $0.30 for 2022 due to reduced demand and adverse foreign exchange effects. The ongoing war in Ukraine and rising interest rates have further strained demand across regions.

Avient Corporation (NYSE: AVNT) has completed its acquisition of DSM's protective materials business, including the Dyneema® brand, now known as Avient Protective Materials. This acquisition enhances Avient's Specialty Engineered Materials segment, leveraging Dyneema®, recognized as the world's strongest fiber, used in high-performance applications. The acquisition includes six production facilities and four R&D centers globally, bolstering Avient's presence in advanced composites. The move is expected to drive innovation and growth in performance-focused material solutions.

Avient Corporation (NYSE: AVNT) announced a definitive agreement to sell its Distribution business to an affiliate of H.I.G. Capital for $950 million in cash, subject to regulatory approval. The transaction is expected to reduce net debt to adjusted EBITDA leverage to approximately 2.8x by year-end. After-tax proceeds of around $750 million will be used to manage near-term debt. This divestiture aligns with Avient's ongoing transformation into a pure play specialty formulator, following the acquisition of DSM's Protective Materials business.

Avient Corporation (NYSE: AVNT) announced the completion of debt financing to support its acquisition of DSM Protective Materials (Dyneema brand), set to close on September 1, 2022. The financing includes $725 million in senior notes due 2030 with a 7.125% interest rate, alongside a secured term loan due 2029. The all-in weighted average interest rate for financing is approximately 6.6%. With projected 2021 revenues of $4.8 billion, Avient aims to leverage the acquisition to enhance its specialized and sustainable material solutions.

Avient Corporation (NYSE: AVNT) has priced its previously announced offering of $725 million in senior notes due 2030, with an annual interest rate of 7.125%. The offering is expected to close on August 10, 2022, and will support the acquisition of DSM's protective materials business. If the acquisition is not consummated by April 19, 2023, the notes will be subject to mandatory redemption. The notes will be offered to qualified institutional buyers under Rule 144A and Regulation S.