CLEVELAND, July 1, 2020 /PRNewswire/ -- PolyOne
Corporation (NYSE: POL), a leading global provider of specialized
polymer materials, services and sustainable solutions, has
completed its purchase of the color masterbatch businesses of
Clariant and Clariant Chemicals India Ltd. PolyOne also
announced that it has changed its name and will now be called
Avient.
"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."
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.
"With this acquisition, Avient now expects over 85% of adjusted
EBITDA to be generated from specialty applications," said Mr.
Patterson. "This is up from less than 10% when our specialty
journey began over a decade ago. While we honor the legacies
of our past organizations, under our new name Avient, we come
together and look 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 – We listen to feedback from
our associates then take action in building our 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
our four Ps of Sustainability (People, Products, Planet and
Performance) we commit 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 we ensure our resources are concentrated on material
science for high-growth end markets, poised for value creation in
the long term.
- Operating Globally, Serving Locally – As a truly global
company, we have operations and technical expertise around the
world to efficiently serve our customers…wherever they may need
us.
- Leveraging Service as Our Timeless Differentiator – We
serve our customers with excellence to build trusting, lasting and
collaborative relationships.
- Delivering Financially for All Stakeholders –
Performance is inextricably linked to the investments we make in
People, Products and Planet. Capturing acquisition synergies and
solidifying Avient as a specialty growth company ensures ongoing
longevity and value creation for our associates, customers,
communities and shareholders.
Mr. Patterson concluded, "These endeavors are made possible by
the joining of our businesses. We are better together."
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.
About Avient
Avient Corporation, with 2019 revenues of $2.9 billion, provides specialized and
sustainable material solutions that transform customer challenges
into opportunities, bringing new products to life for a better
world. Examples include:
- Barrier technologies that preserve the shelf-life and quality
of food, beverages, medicine and other perishable goods through
high-performance materials that require less plastic
- Light-weighting solutions that replace heavier traditional
materials like metal, glass and wood, which can improve fuel
efficiency in all modes of transportation
- Breakthrough technologies that minimize wastewater and improve
the recyclability of materials and packaging across a spectrum of
end uses
Avient employs approximately 9,100 associates and is certified
ACC Responsible Care® and a founding member of the Alliance to End
Plastic Waste. For more information, visit
www.avient.com.
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To access Avient's news library online, please visit
www.avient.com/news
Forward-looking Statements
In this press release, statements that are not reported
financial results or other historical information are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements give current expectations or forecasts of future events
and are not guarantees of future performance. They are based on
management's expectations that involve a number of business risks
and uncertainties, any of which could cause actual results to
differ materially from those expressed in or implied by the
forward-looking statements. They use words such as "will,"
"anticipate," "estimate," "expect," "project," "intend," "plan,"
"believe," and other words and terms of similar meaning in
connection with any discussion of future operating or financial
condition, performance and/or sales. Factors that could cause
actual results to differ materially from those implied by these
forward-looking statements include, but are not limited to: our
ability to achieve the strategic and other objectives relating to
the acquisition, including any expected synergies; our ability to
successfully integrate Clariant's masterbatch business and achieve
the expected results of the acquisition, including, without
limitation, the acquisition being accretive; disruptions,
uncertainty or volatility in the credit markets that could
adversely impact the availability of credit already arranged and
the availability and cost of credit in the future; the effect on
foreign operations of currency fluctuations, tariffs and other
political, economic and regulatory risks; the current and potential
future impact of the COVID-19 pandemic on our business, results of
operations, financial position or cash flows; changes in polymer
consumption growth rates and laws and regulations regarding
plastics in jurisdictions where we conduct business; fluctuations
in raw material prices, quality and supply, and in energy prices
and supply; production outages or material costs associated with
scheduled or unscheduled maintenance programs; unanticipated
developments that could occur with respect to contingencies such as
litigation and environmental matters; an inability to achieve the
anticipated financial benefit from initiatives related to
acquisition and integration, working capital reductions, costs
reductions and employee productivity goals; our ability to pay
regular quarterly cash dividends and the amounts and timing of any
future dividends; information systems failures and cyberattacks;
and other factors affecting our business beyond our control,
including, without limitation, changes in the general economy,
changes in interest rates and changes in the rate of inflation. The
above list of factors is not exhaustive.
Attachment
1
|
|
Net Purchase
Price
|
(Dollars in
millions)
|
|
|
|
|
Clariant
masterbatch
|
|
$
|
1,500
|
|
Clariant India
masterbatch
|
|
56
|
|
Less: Lease
adjustment
|
|
(117)
|
|
Net purchase
price
|
|
$
|
1,439
|
|
Less: Working capital
adjustment
|
|
(6)
|
|
Plus: Net cash
acquired
|
|
55
|
|
Funds to
Seller
|
|
$
|
1,488
|
|
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SOURCE PolyOne Corporation