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, said the company.
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 Dusseldorf (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."
We remind, 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 bn.
LANXESS is a leading specialty chemicals company with sales of EUR 6.1 billion in 2021. The company currently has about 13,200 employees in 33 countries. The core business of LANXESS is the development, manufacturing and marketing of chemical intermediates, additives and consumer protection products.
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