In a news release, officials with the new firm said that Formerra "will continue to supply and support thousands of customers worldwide with its extensive material portfolio of traditional and highly engineered thermoplastic resins, additives and other specialty polymers."
They added that Formerra also will continue to provide "its valued combination of expertise, global market knowledge and industry-leading logistics and service." As an independent distributor, the firm will continue to leverage "its foundational strengths."
A headquarters location will be announced later this year, although the company's LinkedIn page says it is based in Romeoville, Ill.
"When faced with a challenge, Formerra combines forces with our customers and suppliers, leveraging our deep market insights and materials expertise to achieve results," Dodd added in a news release. "We dig in, roll up our sleeves and solve problems. … With the benefit of our new partnership with HIG Capital, this approach will only grow stronger."
In a previous statement to Plastics News, HIG Managing Director Robert Jang said that the firm "is thrilled to be investing in the preeminent distributor of thermoplastic and thermoset resins and additives."
"Looking ahead, we plan to accelerate investments in commercial sales, technical support, operations and digital solutions to drive further value for customers and supplier partners," he added.
Avient Chairman, President and CEO Robert Patterson said in a news release that completing the sale of the distribution unit "enables us to be modestly levered while advancing our specialty transformation with the recent acquisition of DSM's Protective Materials business and the Dyneema brand."
Avon Lake, Ohio-based Avient announced its plans to sell the unit in April. The deal with Miami-based HIG was confirmed in August. As part of Avient, Formerra posted 2021 sales of just over $1.6 billion. The business distributes resin and compounds for 21 suppliers, including Dow Inc., BASF and LyondellBasell Industries.
In 2022, the business has been benefiting from higher resin prices and strong demand from North American plastics processors. In the first half, it posted sales of $876.1 million — up 14 percent vs. the first half of 2021 — and operating profit of $51.3 million, up 7.5 percent in the same comparison.
HIG has made numerous plastics investments over the years. In May, the firm sold materials firm Valtris Specialty Chemicals to SK Capital for an undisclosed price. Independence, Ohio-based Valtris makes polymer additives and specialty chemicals.
Avient predecessor M.A. Hanna Co., which became PolyOne following a merger with Geon Co. in 2000, formed the distribution unit beginning in the mid-1980s by acquiring and combining regional distributors Plastic Distribution Corp. of Ayer, Mass.; Bruck Plastics Co. of Romeoville, Ill.; and Fiberchem Inc. of Seattle into a single business.
Avient is one of the world's largest concentrate makers and one of North America's largest compounders. The firm employs more than 8,000 worldwide and posted total sales of $4.8 billion in full-year 2021.