The joint venture, which commenced operations on April 1, 2023, is the result of the combination of DSM’s Engineering Materials business and LANXESS’s former High Performance Materials business.
LANXESS owns a 40% stake in the joint venture, while Advent owns the remaining 60%. Under the terms of the agreement, LANXESS received a cash payment of approximately EUR 1.3 billion on March 31. This will be used to reduce debt and strengthen the balance sheet.
Additionally, LANXESS will provide a loan of EUR 200 million to support the joint venture financially.
LANXESS is a specialty chemicals company headquartered in Cologne, Germany.
Advent International is a global private equity firm that invests in companies across various sectors and geographies.