Following the announcement of Calum MacLean as CEO-designate, Advent International (“Advent”) and LANXESS AG (“LANXESS”) announce the envisaged global business structure and designated extended management team of the envisaged High Performance Engineering Materials joint venture (“JV”).
Upon closing of the transaction, the JV will be organized into three global business divisions: Performance Materials (comprising DEM Performance Polymers and HPM Engineering Plastics), Specialty Materials (comprising DEM Specialties and HPM Tepex), and Intermediates (comprising HPM Intermediates and DEM Polymer & Films). This structure will take into consideration the specific market characteristics and management requirements of each of the previous HPM and DEM businesses. These three divisions will be supported by a number of central functions, the exact structure of which will be communicated at a later stage. The JV expects to establish a small head office around Düsseldorf (Germany), and will be supported by the existing Geleen (DEM, The Netherlands) and Dormagen (HPM, Germany) locations.
Upon closing of the transaction, the JV Shareholders’ Committee composition will include Ronald Ayles (Managing Partner, Advent), Matthias Zachert (CEO, LANXESS), and Roeland Polet (currently President, DEM), representing all parties to the transaction. Further members of the Shareholders’ Committee will be nominated at a later stage.
Calum MacLean, the CEO-designate of the JV, said, “Preparation for ‘day one’ of this exciting High Performance Engineering Materials joint venture is taking shape. The preparation of an integrated face to the market of the combined businesses and the appointment of the first designated senior executives is a major step to hitting the ground running on completion. Likewise, the envisaged Shareholders’ Committee brings a wealth of experience from Advent and the heritage DSM and LANXESS organizations.”
Background on the Transaction
On 31st May 2022, Advent and LANXESS announced the joint, Advent controlled, acquisition of DSM Engineering Materials, alongside its combination with LANXESS High-Performance Materials (subject to competition clearance), to establish a leading global engineering materials company with sales of around EUR 3 billion. The joint venture will benefit from the strong long-term partnership of all involved parties, as well as from their vast experience and common understanding of establishing and growing a highly innovative engineering materials business. The new company will be one of the leading suppliers to the attractive and growing automotive, electronics, electrical and consumer goods segments, with a particular focus on environmentally friendly and sustainable products. The highly complementary combination both in terms of regional footprint and product range will bring together well-invested assets, skilled employees with a strong cultural fit, and a comprehensive innovation pipeline, therefore creating a strong foundation for sustainable long-term growth, as well as opportunities for employees and customers.
Once established, Advent will hold a minimum share of 60% in the new JV, with the remaining stake being held by LANXESS. The transaction is subject to merger clearances and is expected to close in H1 2023. LANXESS and DSM are currently working on completing the respective carve-outs and preparing business integration for day 1. The designated leadership team and the envisaged business structure has been appointed and respectively decided by Advent, with full support of LANXESS.
Advent International and LANXESS announce future global business structure and designated management team members for envisaged High Performance Engineering Materials joint venture
