Avient Divests Its Distribution Business To H.I.G. Capital For $950M - Avient (NYSE:AVNT)

Avient Corp AVNT has agreed to sell its Distribution business to an affiliate of H.I.G. Capital for $950 million in cash.
In April, the company announced that it was exploring a sale of its Distribution business in connection with announcing an agreement to acquire the Protective Materials business of DSM.
"Ultimately, we selected H.I.G. Capital based on the strength of their proposal, which values the business at approximately 10x LTM EBITDA and includes no financing contingencies. We are also confident that H.I.G. will make an excellent home for the Distribution business and a good partner for Avient as both a supplier and a customer," commented Robert M. Patterson, Chairman, President, and Chief Executive Officer, Avient Corporation.
After-tax proceeds of ~$750 million from the sale will be used to pay down near-term maturing debt. AVNT stated that Pro forma net debt to adjusted EBITDA leverage would be ~2.8x at the end of the year.
Price Action: AVNT shares are trading higher by 7.02% at $48.13 on the last check Friday.