AVON LAKE, Ohio—Private equity firm HIG Capital has plans to grow Avient Corp.'s distribution unit, which it is acquiring for $950 million in cash.
In a statement to Plastics News, Robert Jang, managing director with Miami-based HIG. said that the firm "is thrilled to be investing in the preeminent distributor of thermoplastic and thermoset resins and additives."
"Looking ahead, we plan to accelerate investments in commercial sales, technical support, operations and digital solutions to drive further value for customers and supplier partners," he added.
The deal was announced Aug. 12, about four months after Avon Lake-based Avient had announced plans to sell the unit, which ranks as one of North America's largest resin distributors. The business posted 2021 sales of $1.63 billion. It distributes resin and compounds for 21 suppliers, including Dow Inc., BASF SE and LyondellBasell Industries.
"As expected, there were multiple buyers interested in acquiring the distribution business, and it was a competitive process," Avient Chairman, President and CEO Robert Patterson said Aug. 12.
"Ultimately, we selected HIG based on the strength of their proposal, which values the business at approximately 10 times (last 12 months) EBITDA and includes no financing contingencies," he added. After-tax proceeds of roughly $750 million from the sale will be used to pay down near-term maturing debt.