Royal DSM, a global science-based company focused on health and nutrition, has announced the completion of the sale of its Engineering Materials business to Advent International and LANXESS for an enterprise value of €3.85 billion. The sale agreement was first announced on May 31, 2022.
Divestment of Materials Businesses
The transaction covers all of DSM’s Engineering Materials activities and marks the conclusion of the company’s divestment of its Materials businesses. DSM is streamlining its operations to concentrate on its core competencies in health and nutrition.
Expected Book Profit
DSM anticipates a book profit on the sale of Engineering Materials of around €2.7 billion, and it will receive approximately €3.5 billion net in cash.
Further Information on the Acquisition
Royal DSM’s Engineering Materials business produces high-performance plastics, fiber-reinforced thermoplastics, and 3D printing materials. The business had sales of €1.4 billion in 2021 and employs over 4,000 people.
Advent International is a global private equity firm that invests in companies across various sectors, including healthcare, consumer, and technology. LANXESS, a specialty chemicals company based in Germany, produces specialty chemicals, including flame retardants and rubber additives.
The sale of DSM’s Engineering Materials business will enable the company to strengthen its focus on health and nutrition, where it sees significant growth opportunities. DSM plans to use the proceeds from the sale to invest in its core businesses and drive future growth.