Dutch chemical company DSM has sold 60% of the shares of Fibrant China to the Highsun Holdings Group Ltd. Through the joint venture Chemicalnvest, DSM and CVC Capital Partners indirectly own 35% and 65% respectively of the shares of Fibrant. The intended sale is expected to be completed later in 2018, subject to customary regulatory approvals.
It is estimated that DSM will receive about EUR200 million in cash following the closing of the transaction with Highsun.
Highsun will assume the drawing rights and supply contracts of Fibrant, with Fibrant continuing to supply at least 80% of DSM Engineering Plastics’ input needs in Europe and North America until 2030, effectively maintaining DSM’s backward integration. In China, DSM will continue to be supplied by Fibrant as today. This secures an ongoing strategic and competitive position for the polyamide 6 business in which DSM is a global leader.
After completion of the intended sale, DSM and CVC Capital Partners will still own 35% and 65% respectively of the shares of the two remaining business units of the ChemicaInvest joint venture: Aliancys (composite resins) and AnQore (acrylonitrile), which jointly generated almost EUR700 million in revenues with an EBITDA margin of about 12% in 2017.
DSM formed ChemicaInvest, a joint venture with CVC Capital Partners, in 2015. Fibrant supplies caprolactam as well as ammonium sulphate, cyclohexanone, oil stripper bottom (OSB) and CO2.