DSM enters agreement to sell Engineering Materials business to Advent International and LANXESS for €3.85B; Engineering Materials represented €1.5B of DSM's total annual net sales

Sample article from our Chemicals Industry

May 31, 2022 (press release) –

Royal DSM, a global purpose-led science-based company, today announces that it has reached an agreement to sell its Engineering Materials business to Advent International and LANXESS for an Enterprise Value of €3.85 billion.

The proposed transaction marks the conclusion of DSM’s review of strategic options for its two Materials businesses and, following the agreement to sell DSM Protective Materials to Avient Corporation in April, the transformation of DSM into a focused science-based leader in Health, Nutrition & Bioscience.

DSM Engineering Materials represented €1.5 billion of DSM’s total annual net sales and €334 million of DSM’s total Adjusted EBITDA for 2021. DSM expects to receive about €3.5 billion net in cash following closing, after transaction costs and capital gains tax.

DSM Engineering Materials will become part of a newly created joint venture, together with LANXESS’s High Performance Materials business, which will be co-owned by Advent International (60%) and LANXESS (40%). This will create a new global specialty materials company with the focus and investment that can drive the development of customer-focused innovation, in particular for industry’s transition to bio-based and circular solutions. The transaction will create a platform for further growth for DSM Engineering Materials and its people. Completion of the transaction, which is subject to the customary conditions and approvals, is expected in H1, 2023.

Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of DSM, commented: “In reviewing possible futures for DSM’s Materials businesses, we have found tremendous new homes where they will be core to each new owner’s growth ambitions. DSM Engineering Materials has been a purpose-led, performance-driven frontrunner thanks to its global talented team since the 1980s. We are certain Advent International and LANXESS will be good new owners in a transaction that is strategically attractive for all parties as we focus DSM on improving people’s health and well-being. DSM has a track record of successful transformation over the past half century, and we are well underway in another such moment of strategic change.”

Ronald Ayles, Managing Partner at Advent International, said: “We are deeply impressed by the people, performance and capabilities of DSM’s Engineering Materials business. We are convinced that, together with LANXESS HPM, the combination of both firms will be in the best position to enact sustainable long-term growth in the engineering materials sector. At Advent International, we are very excited to contribute our deep chemical industry expertise and experience to this joint venture and we are looking forward to working with the outstanding people at DSM Engineering Materials. Together we will create a global engineering materials industry leader.”

Matthias Zachert, CEO of LANXESS, commented: “With the new joint venture, we are forging a strong global player in the field of high-performance plastics. The portfolios, value chains and global positioning of the two businesses complement each other perfectly. With its innovative products, the joint venture will be able to play a key role in shaping future developments - for example in the field of electromobility. In Advent, we have a strong and reliable partner with profound experience in the chemical industry and our customer industries.”

Advent International will be the majority owner of the newly created joint venture and has extensive investment experience in the global chemical sector with a proven track record in transforming companies from corporate carve-outs into industry-leading players. Advent also fosters the growth and market position of portfolio companies through further acquisitions and organic investments.

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.

See our dashboard in action - schedule an demo
Chelsey Quick
Chelsey Quick
- VP Client Success -

We offer built-to-order chemicals industry coverage for our clients. Contact us for a free consultation.

About Us

We deliver market news & information relevant to your business.

We monitor all your market drivers.

We aggregate, curate, filter and map your specific needs.

We deliver the right information to the right person at the right time.

Our Contacts

1990 S Bundy Dr. Suite #380,
Los Angeles, CA 90025

+1 (310) 553 0008

About Cookies On This Site

We collect data, including through use of cookies and similar technology ("cookies") that enchance the online experience. By clicking "I agree", you agree to our cookies, agree to bound by our Terms of Use, and acknowledge our Privacy Policy. For more information on our data practices and how to exercise your privacy rights, please see our Privacy Policy.