Materials supplier PolyOne Corp. announced today that it has completed its purchase of the color masterbatch businesses of Clariant and Clariant Chemicals India Ltd. for $1.44 billion. PolyOne also announced that it has changed its name to 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 CEO, in a prepared statement. "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,” he added.
Avient is a neologism invented to reflect the company’s commitment to inspiring each other and the world to “pursue and achieve our fullest potential,” said the company.
The agreement to acquire the Clariant Masterbatch business was originally announced in December 2019. It 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 of $1.44 billion represents a 10.8x multiple of 2019 adjusted EBITDA, or 7.5x including anticipated synergies, said Avient. In 2019, PolyOne reported revenues of $2.9 billion.
"With this acquisition, Avient now expects over 85% of adjusted EBITDA to be generated from specialty applications," said 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 press release outlined key priorities for the new organization, which include commitments to workplace safety, being a great place to work, and inclusion and diversity; leading in sustainability; investing in innovation; operating globally and serving locally; leveraging customer service as a differentiator; and promoting shareholder value.
Logo and image courtesy Avient