P olyOne 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.
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 avient.com.