Lanxess, Advent unveil name and CEO for new JV: Envalior

The engineering materials business combining parts of Lanxess AG and Royal DSM NV has a new name: Envalior.

Officials with the firm in Düsseldorf, Germany, unveiled the new name in an April 3 news release. Envalior has annual sales of around 4 billion euros ($4.35 billion) and employs about 4,000 worldwide.

Envalior "ranks among the top engineering materials companies globally," officials added. The firm includes businesses from DSM Engineering Materials and Lanxess High Performance Materials. It is owned by Cologne, Germany-based Lanxess and global private equity firm Advent International of Boston.

According to the release, Envalior "will offer its customers a portfolio of leading product brands and recycled and bio-based materials, combined with deep application and materials expertise." The firm will serve numerous industries, including automotive, electronics and electrical, and consumer goods.

Lanxess and Advent acquired the DSM businesses for almost $4 billion in a deal announced in May 2022.

Advent owns at least 60 percent of Envalior. Lanxess received an initial payment of at least $1.2 billion and a stake of up to 40 percent. Lanxess also has the option to divest its stake to Advent at the same valuation after three years.

Lanxess businesses included in Envalior make nylon 6 and polybutylene terephthalate resins and thermoplastic fiber composites.

DSM businesses included in Envalior make nylon, PET, PBT, copolyester and other materials.

Envalior includes DSM sites in Geleen and Emmen, Netherlands; Shangyu and Jiangyin, China; Pune and Pantnagar, India; Genk, Belgium; Kaohsiung, Taiwan; and Evansville, Ind.

Lanxess sites included in Envalior are in Brilon, Hamm-Uentrop and Krefeld-Uerdingen, Germany; Wuxi and Changzhou, China; Antwerp, Belgium; Jhagadia, India; Porto Feliz, Brazil; and Gastonia, N.C.

The Envalior name combines "en" (engaging, enterprising, engineering, environment) and "valior" (value-driven and value-creating), officials said. Envalior will consist of three global divisions: Performance Materials, Specialty Materials and Intermediates.

Calum MacLean will serve as CEO. He has more than 30 years of plastics and chemicals experience, most recently as CEO of British materials firm Synthomer plc.

In the release, MacLean said that by combining two highly complementary businesses, Envalior "has created a true industry leader that will realize value and drive progress for our customers, our employees, our shareholders and society as a whole."

MacLean added that Envalior "will build on its strong track record of innovating at the forefront of changing market dynamics and evolving customer needs focusing on sustainability. … Moving forward, we will continue to drive carbon-efficient and circular technology within our industry."

Envalior "has great potential for sustainable, long-term growth in the specialty materials industry," Advent managing partner and global chemicals head Ronald Ayles said. Advent has $88 billion in assets under management. Its holdings include German acrylic resin maker Röhm GmbH.

With the joint venture, Envalior "is launching a global champion in high-performance polymers," Lanxess CEO Matthias Zachert added.