(Reuters) -Specialized polymer materials maker Avient Corp said on Wednesday it has entered into an agreement with DSM to buy its material division for $1.48 billion.
The proposed sale of DSM's Protective Materials business comes after the Dutch specialty chemicals maker's announcement last year about exploring an exit for the division as it aimed at making sustainable food and health products.
Avient's potential purchase deal includes all of DSM's Protective Materials activities, mainly consisting of Dyneema, DSM said in a separate statement, adding that the unit accounted for 335 million euros ($362.34 million) of the company's total annual net sales in 2021.
Financing for the transaction — expected to close later this year — is being provided by Morgan Stanley (NYSE:MS) and JPMorgan (NYSE:JPM), Avient said.
Avient, meanwhile, also said it plans to explore the sale of its distribution business, but did not provide additional details on the divestment.
($1 = 0.9246 euros)