Avient Corporation (NYSE: AVNT), a global distributor of sustainable and specialized material solutions, will sell its distribution business to an affiliate of H.I.G. Capital for $950 million in cash. Avient’s divestment is in connection with an agreement to purchase DSM’s protective materials business.
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“As expected, there were multiple buyers interested in acquiring the Distribution business, and it was a competitive process. Ultimately, we selected H.I.G. Capital based on the strength of their proposal, which values the business at approximately 10x LTM EBITDA and includes no financing contingencies. We are also confident that H.I.G. will make an excellent home for the Distribution business and a good partner for Avient as both a supplier and a customer,” Avient President, Chairman and CEO Robert M. Patterson said.
Ian Heller is the Founder and Chief Strategist for Distribution Strategy Group. He has more than 30 years of experience executing marketing and e-business strategy in the wholesale distribution industry, starting as a truck unloader at a Grainger branch while in college. He’s since held executive roles at GE Capital, Corporate Express, Newark Electronics and HD Supply. Ian has written and spoken extensively on the impact of digital disruption on distributors, and would love to start that conversation with you, your team or group. Reach out today at iheller@distributionstrategy.com.