LANXESS, a specialty chemicals company, and private equity investor Advent International havecompleted the formation of their engineering materials joint venture (JV) effective April 1, 2023, which sees the amalgamation of DSM’s Engineering Materials business and LANXESS’ former High Performance Materials business.

LANXESS holds about 40 percent of the joint venture, with Advent keeping a 60 percent stake. LANXESS, which reported sales of Euro 8.1 billion in 2022, also received a cash payment of around Euro 1.3 billion, as part of the agreement.

LANXESS is using this mainly to reduce its debt and strengthen its balance sheet. As financial support for the joint venture, LANXESS will be providing a loan of Euro 200 million.