DSM informs market on the announced sale of Fibrant’s Caprolactam business to Highsun
It is estimated that DSM will receive about €200 million in cash following the closing of the transaction with Highsun Holdings Group Ltd.
Highsun Holdings Group Ltd. 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 Engineering Plastics’ backward integration. In China, DSM Engineering Plastics 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 €700 million in revenues with an EBITDA margin of about 12% in 2017.