DSM sells stake in polymer intermediates and composite resins business to CVC

DSM and CVC Capital Partners (CVC) announced a partnership focusing on DSM's activities in polymer intermediates (caprolactam and acrylonitrile) and composite resins. The activities will be undertaken by a newly formed company where CVC will own 65% and 35% by DSM. The enterprise value of the transaction is €600 million plus an earn-out of up to €175 million.

 

Financing of the new company will primarily be through an equity contribution from both  shareholders, third party financing and a €100 million bridge loan provided by DSM. 

 

 

The move is part of the strategic actions DSM announced for these businesses in November 2014 and is a decisive step in further optimizing its portfolio and reducing its cyclicality. The new company will operate as an independent, dedicated company under the leadership of CVC so DSM can now focus fully on improving the operational performance of its Nutrition and Performance Materials businesses as well as benefitting from the future value creation in this new venture.  

 

As a result of this undertaking, DSM will contribute its global caprolactam business (Europe, North America, its 60% stake in DNCC (China) and the caprolactam licensing business), DSM's acrylonitrile business and DSM's Composite Resins business including its 75% stake in JDR (China).  The new company will operate as an independent company with three business units: caprolactam, acrylonitrile and composite resins.