DSM Integrated Annual Report 2022

About DSM Materials

As part of our strategic repositioning as a company focused on Health, Nutrition & Bioscience, in 2021 we commenced the process of selling our Materials businesses, comprising DSM Protective Materials and DSM Engineering Materials. The first step in this process involved the sale of our Resins & Functional Materials and associated businesses to the specialty materials player Covestro AG. This was completed in 2021.

DSM Protective Materials and DSM Engineering Materials produce a high-quality portfolio of specialty materials for global end-markets including electrical components and electronics, automotive, food packaging, medical, personal protection, commercial marine, and apparel. Through their advanced and sustainable solutions, these two businesses help meet demand for safer materials, greater efficiency and improved environmental performance.

Completion of sale of DSM Protective Materials

On 20 April, we reached an agreement to sell our Protective Materials business to Avient Corporation. The sale was completed on 1 September for an enterprise value of €1.45 billion.

The transaction included all of DSM’s Protective Materials activities, chiefly consisting of Dyneema®, the world’s strongest fiber™. The business represented €335 million of DSM’s total annual net sales and €105 million of DSM’s total Adjusted EBITDA for 2021. DSM posted a book profit of around €1 billion and received approximately €1.35 billion net in cash. The transaction, which is strategically attractive for all parties, creates a business with considerable growth synergies. It will benefit customers as well as employees of DSM Protective Materials as Avient helps the business deliver on its outstanding potential. Avient will continue investing in innovation and sustainable solutions, further accelerating the remarkable impact and possibilities of the business and Dyneema® brand.

Announcement of sale of DSM Engineering Materials

On 31 May, we reached an agreement to sell our Engineering Materials business to Advent International and LANXESS for an enterprise value of €3.85 billion.

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 the 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 the first half of 2023.

Earnings Before Interest, Taxes, Depreciation and Amortization