The joint venture will comprise three global business divisions, including Performance Materials, Specialty Materials and Intermediates
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 (JV). Earlier, the duo has announced Calum MacLean as CEO-designate.
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 Düsseldorf (Germany), and will be supported by the existing Geleen (DEM, The Netherlands) and Dormagen (HPM, Germany) locations.
Advent and LANXESS together with the CEO-designate have announced the following appointments to the designated executive leadership team (further appointments will be made at a later stage):
CFO: Stephen Bennett
EVP Strategy & Transformation: Peter-Hanjo Homberg (currently LANXESS)
EVP Human Resources: Anneleen Drieskens (currently DSM)
EVP Performance Materials: (to follow)
EVP Specialty Materials: Caroline Mitterlehner (currently DSM)
EVP Intermediates: Peter Henrichfreise (currently LANXESS)
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.”
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 billion.
The new company will be one of the leading suppliers to the attractive and growing automotive, electronics, electrical and consumer goods segments, with a particular focus on environmentally friendly and sustainable products.
Once established, Advent will hold a minimum share of 60% in the new JV, with the remaining stake being held by LANXESS. The transaction is subject to merger clearances and is expected to close in H1 2023. LANXESS and DSM are currently working on completing the respective carve-outs and preparing business integration for day 1. The designated leadership team and the envisaged business structure has been appointed and respectively decided by Advent, with full support of LANXESS.
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