AVON LAKE, Ohio—July 1 is a big day for materials maker PolyOne Corp., as the firm closes a $1.44 billion deal and officially changes its name to Avient Corp.
Avon Lake-based PolyOne—now Avient—completed its acquisition of the color masterbatch businesses of Clariant A.G. That deal, which was announced in December, adds 46 manufacturing sites and technology centers in 29 countries and about 3,500 employees to Avient's previous total.
The business being acquired has annual sales of $1.1 billion. It will operate as part of Avient's Color, Additives & Inks unit.
"We proudly welcome our newest associates and valued customers from Clariant Masterbatch," Robert Patterson, chairman, president and CEO, said in a news release. "They are joining us on Day 1 of this new era for our company, which, as of today, will be named Avient."
He added that under the new brand, the firm "brings 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."
The $1.44 billion purchase price represents a 10.8x multiple of 2019 adjusted earnings before interest, taxes, deducations and amortization (EBITDA), or 7.5x including anticipated synergies. Patterson said that with the acquisition, Avient now expects more than 85 percent of adjusted EBITDA to be generated from specialty applications.
That amount, he added, is up from less than 10 percent "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," Patterson said.