PolyOne has completed its purchase of the color masterbatch businesses of Clariant and Clariant Chemicals India Ltd and has changed its name to Avient.
Acquisition was Announced in December 2019
The entry into the agreement to acquire the Clariant Masterbatch business was originally announced in December 2019. The Clariant Masterbatch business includes 46 manufacturing operations and technology centers in 29 countries and approximately 3,500 employees, who will join Avient's Color, Additives and Inks segment.
The combined net purchase price is $1.44 billion (see Attachment 1), representing a 10.8x multiple of 2019 adjusted EBITDA, or 7.5x including anticipated synergies.
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We proudly welcome our newest associates and valued customers from Clariant Masterbatch. They are joining us on Day 1 of this new era for our company, which as of today will be named Avient," said Robert M. Patterson, chairman, president and chief executive officer, Avient.
Mr. Patterson continued, "
Under this new brand, we bring two global leaders together to create a specialty company focused on sustainable solutions for our customers, being a Great Place to Work for our associates, and creating value for all stakeholders."
With this acquisition, Avient now expects over 85% of adjusted EBITDA to be generated from specialty applications. This is up from less than 10% when the specialty journey began over a decade ago. Under the new name Avient, the company looks to the future as a world-class sustainable organization.
The company outlined key priorities for the new organization:
- Keeping Safety First – PolyOne and Clariant are both ACC Responsible Care® companies, and nothing is more important than the health, safety and well-being of our people.
- Being a Great Place to Work – The company listens to feedback from its associates then take action in building high-performance culture and being a global employer of choice.
- Advancing Inclusion and Diversity – All associates are valued and encouraged to bring their true selves to work every day.
- Leading in Sustainability – PolyOne and Clariant are both founding members of the Alliance to End Plastic Waste. Through the four Ps of Sustainability (People, Products, Planet and Performance) the company commits to meeting the needs of the present without compromising the ability of future generations to do the same.
- Investing in Innovation – Specialty companies invest to grow, so PolyOne ensures its resources are concentrated on material science for high-growth end markets, poised for value creation in the long term.
- Operating Globally, Serving Locally – PolyOne has operations and technical expertise around the world to efficiently serve its customers.
- Leveraging Service as Timeless Differentiator – PolyOne serves its customers with excellence to build trusting, lasting and collaborative relationships.
- Delivering Financially for All Stakeholders – Capturing acquisition synergies and solidifying Avient as a specialty growth company ensures ongoing longevity and value creation for its associates, customers, communities and shareholders.
In conjunction with its rebranding and new name, the company's ticker symbol will change from "POL" to "AVNT," effective at the start of trading on July 13, 2020. As of that date, the "POL" trading symbol will no longer be active.
Source: PolyOne