DSM sells part of its Polymer Intermediates and Composite Resins businesses to CVC

Royal DSM, the Life Sciences and Materials Sciences company, and CVC Capital Partners (CVC), one of the world’s leading investment advisory firms, announced a partnership for DSM’s activities in Polymer Intermediates (Caprolactam and Acrylonitrile) and Composite Resins through the formation of a new company, provisionally called NewCo.

Highlights of the transaction:

  • NewCo will be 65% owned by CVC and 35% by DSM, with 1,950 employees
  • Pro-forma third-party sales of NewCo in 2014 amounted to €2.1 billion with a 2014 EBITDA of €106 million
  • The enterprise value of the transaction is €600 million plus an earn-out of up to €175 million
  • Financing of NewCo will primarily be through an equity contribution from both shareholders, third party financing and a €100 million bridge loan provided by DSM
  • Estimated net cash proceeds at closing to DSM of €300-350 million