Avient (US:AVNT)2019-12-19 20:13Acquisition Highlights - The acquisition of Clariant Masterbatch is expected to add $085 to pro forma adjusted EPS[13] - The net purchase price for Clariant Color & Additive Masterbatch Business is $145 billion[61] - Equity issuance of $400 million to $500 million is planned to finance the acquisition[61] Financial Projections & Synergies - 2019E Adjusted EBITDA for PolyOne is projected at $310 million with a 108% margin[56] - 2019E Adjusted EBITDA for Clariant Color & Additive Masterbatch Business is projected at $130 million with an 113% margin[56] - Synergies of $60 million are expected from the acquisition of Clariant Color & Additive Masterbatch Business[24, 56, 61, 65] - The combined company is projected to have $4010 billion in total sales and $500 million in adjusted EBITDA with a 125% margin in 2019E[56] - 2019E Free Cash Flow is projected at $250 million for the new PolyOne[56] Strategic Transformation - The company is undergoing a landmark portfolio transformation with > 85% of Adjusted EBITDA from specialty solutions[13, 76] - The company expects $600 million of after-tax proceeds from the divestiture of Performance Products & Solutions to fund ongoing specialty transformation[23] Capital Structure & Leverage - Target net leverage at close is expected to be below 35x, or 31x synergized, with the intention to de-lever below 30x within 2 years[61, 73] - New equity of $450 million is planned as part of the financing structure[68, 70]