Global private equity investor Advent International (Advent), and specialty chemicals company LANXESS are establishing a joint venture have formed a joint-venture to acquire engineering materials business (DEM) from Dutch group Royal DSM.
The Enterprise Value is around €3.7 billion and will be financed by the joint venture via equity from Advent and external debt. The business represents sales of around EUR1.5 billion with an EBITDA margin of approximately 20%.
In addition, LANXESS is combining its High Performance Materials (HPM) business unit with DEM. HPM is one of the leading suppliers of engineering and high-performance polymers, which are used primarily in the automotive industry.
