https://www.avient.com/sites/default/files/2020-11/cotrep-at-20-19-avient-corporation-cesar-ir-pp-94000725.pdf
AT 20-19
1
Avis Technique – Tri
Détectabilité et tri de la solution colorante AVIENT CORPORATION / CESA® IR PP 94000725
dans les centres de tri
S
C
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IP
TI
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L
A
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GENERALITES
Demandeur Avient Corporation
Date de la demande 2020
Référence de la solution colorante CESA® IR PP 94000725
Limite max de concentration de la
solution colorante
4%
DESCRIPTION DE LA SOLUTION COLORANTE
Couleur Noire
Solution colorante adaptée pour : Emballages rigides en PP
OBJET DE LA DEMANDE
Etude de la détectabilité dans les centres de tri français de la solution colorante noire CESA® IR PP 94000725
proposée par Avient Corporation et utilisée pour colorer des emballages rigides en PP.
La solution colorante noire CESA® IR PP 94000725 de Avient Corporation utilisée pour colorer
des emballages rigides en PP est une alternative aux solutions colorantes non détectables.
En effet, les
emballages rigides en PP intégrant 4% de solution colorante noire CESA® IR PP 94000725 sont
détectés et orientés vers le flux PP avec les mêmes performances (qualité, taux de captage)
que les autres emballages rigides ménagers en PP.
https://www.avient.com/sites/default/files/2022-02/Additives and Colorants for PP-R Pipe Systems Application Bulletin.pdf
Additives and Colorants
for PP-R and PP-RCT Pipe Systems
Polypropylene-random grades (PP-R and PP-
RCT) are increasingly used for hot and cold water
supply pipe systems in civil and public buildings.
ANTIOXIDANTS FOR METAL/PP-R AND
PP-RCT SYSTEMS
Plastic systems in contact with metal inserts
can also be subject to oxidization.
Avient offers
antioxidants that act as metal deactivator for
PP-R and PP-RCT components fitted with metal
inserts.
https://www.avient.com/products/polymer-additives/antioxidant-additives/cesa-unify-a4r
Recycle Solutions
Improves the mechanical performance of mixed PP/PE streams
Design for Recycling
https://www.avient.com/sites/default/files/2020-11/cotrep-at-20-20-avient-corporation-cesar-ir-pp-94000721.pdf
AT 20-20
1
Avis Technique – Tri
Détectabilité et tri de la solution colorante AVIENT CORPORATION / CESA® IR PP
94000721dans les centres de tri
S
C
R
IP
TI
O
N
D
L
A
D
M
A
N
GENERALITES
Demandeur Avient Corporation
Date de la demande 2020
Référence de la solution colorante CESA® IR PP 94000721
Limite max de concentration de la
solution colorante
4%
DESCRIPTION DE LA SOLUTION COLORANTE
Couleur Noire
Solution colorante adaptée pour : Emballages rigides en PP
OBJET DE LA DEMANDE
Etude de la détectabilité dans les centres de tri français de la solution colorante noire CESA® IR PP
94000721proposée par Avient Corporation et utilisée pour colorer des emballages rigides en PP.
La solution colorante noire CESA® IR PP 94000721 de Avient Corporation utilisée pour colorer
des emballages rigides en PP est une alternative aux solutions colorantes non détectables.
En effet, les
emballages rigides en PP intégrant 4% de solution colorante noire CESA® IR PP 94000721 sont
détectés et orientés vers le flux PP avec les mêmes performances (qualité, taux de captage)
que les autres emballages rigides ménagers en PP.
https://www.avient.com/sites/default/files/2024-05/Cesa Light Additives-PP Nonwoven Geotextile-Case study snapshot.pdf
PP NONWOVEN
MANUFACTURER
G E O T E X T I L E S
• High concentrate UV solution (up to 50% light protection)
in PP nonwoven textiles
• Shorter lead time from existing supplier
• Local technical support
• Long-lasting UV stability
• Provided high concentrate UV protection in
nonwoven textiles with dosage @ 50%
• Shortened the lead time with global supply
and technical service
• Offered excellent UV stability
CesaTM Light Additives
KEY REQUIREMENTS
WHY AVIENT?
https://www.avient.com/products/polymer-additives/uv-and-light-blocking-additives/cesa-light-additives
Slide 1: PP NONWOVEN MANUFACTURER
https://www.avient.com/knowledge-base/case-study/utilizing-ocean-plastic-more-circular-economy?pname[]=17849
Recycle Solutions
reSound™ REC Recycled Content Thermoplastic Elastomers
Available in North America, injection-moldable reSound™ REC TPEs utilize 9-83% recycled content, and both grades can be overmolded onto polypropylene (PP).
https://www.avient.com/knowledge-base/case-study/utilizing-ocean-plastic-more-circular-economy?sust[]=1137
Recycle Solutions
reSound™ REC Recycled Content Thermoplastic Elastomers
Available in North America, injection-moldable reSound™ REC TPEs utilize 9-83% recycled content, and both grades can be overmolded onto polypropylene (PP).
https://www.avient.com/news/avient-introduces-colormatrix-amosorb-oxyloop-new-oxygen-scavenging-additive-enhance-recyclability
Avient Introduces ColorMatrix™ Amosorb™ Oxyloop™: A New Oxygen Scavenging Additive to Enhance Recyclability
Avient’s Oxyloop-1 grade has earned the endorsement of the European Platform for Bottle Packaging (EPBP) for bottle-to-bottle recyclability for the colored recycled stream.
Additionally, this non-nylon-based product is compatible with recycled polyethylene terephthalate (rPET), making it an excellent choice for brands looking to incorporate higher levels of recycled material into their packaging.
https://www.avient.com/sites/default/files/2020-03/PolyOne_Website-12.19.pdf
S A F E T Y F I R S T
PolyOne Corporation 7
Injuries per 100 Workers
Spartech
Acquisition
1.3
1.1 1.1
0.85
0.65
0.57
0.54
0.97
0.84
0.74 0.74
0.69
0.51
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
G R E A T P L A C E T O W O R K
PolyOne Corporation 8
* Pro Forma for sale of DSS
Operating Income
% of Sales
2006 Q3 YTD
2019
Color, Additives &
Inks
1.7% 15.5%
Specialty Engineered
Materials
1.1% 11.8%
Distribution 2.6% 6.3%
2009 2010 2011 2012 2013 2014 2015 2016*2017* 2018
$2.43
P R O O F O F P E R F O R M A N C E
C O N S E C U T I V E
Y E A R S
PolyOne Corporation 9
10
$0.13
$0.68
$0.82
$1.00
$1.31
$1.80
$1.96
$2.06
$2.21
A D J U S T E D E P S E X P A N S I O N
2018 2019E
$1.65
$1.51
Pro Forma for sale
of PP&S
T R A N S F O R M A T I O N H E A D L I N E S
PolyOne Corporation 10
C O M M O D I T Y T O S P E C I A L T Y T R A N S F O R M A T I O N
PolyOne Corporation 11
• Volume driven,
commodity
production
• Heavily tied to cyclical
end markets
• Performance largely
dependent on non-
controlling joint
ventures
• Shift to value-based
selling & an innovative
culture
• New leadership team
appointed
• Implementation of
four pillar strategy
• Investment in
commercial training
and innovation
• Faster growing, high
margin focus
• Accelerated growth
with world class
vitality index
• Significant
commercial resource
additions
• Expanded margins
with specialty focus
• Acquired strategic,
bolt-on companies to
expand technology
offerings and improve
geographic breadth
Volume Value Transformation The Future
2006 - 2013 2013 – 20192000-2005 2006 - 2013
• Landmark portfolio
transformation
creates specialty
growth company
• Sustainability / mega-
trends drive above
market growth
2020 and
Beyond
F I T W I T H F O U R P I L L A R S T R A T E G Y
PolyOne Corporation 12
Specialization
• Innovation-led organization with
heavy emphasis on R&D
• World-class expertise in color
formulation
• Strong presence in specialty end
markets including Consumer,
Packaging and Healthcare
Globalization
• Diverse geographic portfolio with
an established presence in every
major region
• Expands PolyOne’s ability to serve
customers in key growth areas
including India, China and
Southeast Asia
Operational
• Extensive manufacturing footprint
with 46 facilities
• Organizational focus on optimizing
supply chain to better serve
customers
• Color design expertise
Commercial
• Value-focused salesforce with vast
experience marketing and
commercializing specialty
technologies
• Diverse customer portfolio with
established OEM’s
People
Experienced and
talented
associates with a
winning mentality
L E V E R A G I N G G L O B A L M E G A T R E N D S
13
Facilitate
alternative
energy
solutions
Light-
weighting
Reduce
packaging
materials
Improve
recyclability
Reduce
spread of
infection
T R A N S P O R T A T I O N P A C K A G I N G H E A L T H C A R EC O N S U M E R
PolyOne Corporation
E N D M A R K E T T R A N S F O R M A T I O N
PolyOne Corporation 14
Building & Construction
18%
8%
50%
22%
High Growth End Markets
Percentage of Total Revenue
38%
E N D M A R K E T T R A N S F O R M A T I O N
PolyOne Corporation 15
8%
Building &
Construction
38%
Wire &
Cable
11%
Industrial
Electrical &
Electronic
7%
Transportation
18%
Building &
Construction
Wire &
Cable
Industrial
Electrical &
Electronic
Appliance
3%
Textiles
Transportation
13%
C O M P L E M E N T A R Y G E O G R A P H I C P R E S E N C E
PolyOne Corporation 16
38% Europe
33%
Asia
19%
22%
Europe
Asia & Middle East
31%
1%
Color & Engineered
Materials
Clariant Color & Additive
Masterbatch Business
Net Sales by Geographic Region
31%
Europe
36%
Asia & Middle East
24%
3%
Pro Forma Color &
Engineered Materials
531
710
1,042
130
164
208
504
663
880
2014 2018 2019E PF*
R&D / Technical Marketing Sales
PolyOne Corporation 17
+ 34%
+ 26%
+ 32%
E X P A N S I O N O F COMMERCIAL RESOURCES D R I V I N G G R O W T H
$2.9 $2.9
$3.5
2015 2016 2017 2018 2019E
PF
Total
+ 9%
Organic
+ 5%
Revenue in Billions
Total
+ 10%
Organic
+ 7%+ 47%
+ 27%
+ 33%
$4.0
$3.2
2019E PF*
P R I O R A C Q U I S I T I O N S : P R O O F O F P E R F O R M A N C E
PolyOne Corporation 18
Commercial
Resources
Operating
Income
($ in millions)
Operating
Margins
243
340
$36
$96
11%
Established Acquisitions
(> 7 years)
+ 40% + 165% + 900 bps
U N I F I E D F O C U S O N S U S T A I N A B I L I T Y
PolyOne Corporation 19
2006 - 2013
2013 – 2019
PEOPLE
PRODUCTS PLANET
PERFORMANCE
Clariant Color & Additive
Masterbatch Business
• Building mini-recycling plants to
facilitate customer projects on
design for recycling - CycleWorks
• Uses packaging additives &
colorants to improve recyclability
and enhance automated sorting
• Manufactures oxygen scavengers
to extend shelf-life of perishable
items and reduce material
requirements
• Combines UV-blocking additive
colorants & other barriers to
prevent spoilage and waste
• Offers spin-dyeing solutions that
use significantly less water than
traditional methods, allowing for
sustainable coloration of textiles
• Produces infrared absorbing
additives that reduce energy
requirements for bottle
manufacturing
($ in millions)
(Continuing
Operations)
Clariant Color &
Additive Masterbatch
Business
Synergies
New
2019E Total Sales $2,860 $1,150 $4,010
2019E Adjusted EBITDA $310 $130 $60 $500
% Margin 10.8% 11.3% 12.5%
2019E CapEx $60 $85
% Sales 2.1% 2.1%
2019E Free Cash Flow $170 $250
2019E Adjusted EPS $1.65 $2.22
2019E PF Adjusted EPS $1.65 $2.50
P O L Y O N E + C L A R I A N T C O L O R & A D D I T I V E
M A S T E R B A T C H B U S I N E S S
PolyOne Corporation 20
(1) Excludes step-up of depreciation & amortization related to purchase accounting of transaction
(1)
$0.85/share
O V E R 8 5 % O F A D J U S T E D E B I T D A F R O M S P E C I A L T Y
PolyOne Corporation 21
46%
66%
0%
60%
80%
100%
2005 2010 2015 2019E PF
%
o
f
A
d
ju
s
te
d
E
B
IT
D
A
*
JV's Performance Products & Solutions Distribution Specialty
7%
87%
* Adjusted EBITDA is EBITDA excluding corporate costs and special items
** 2019E Pro Forma for PP&S Divestiture and Clariant Color & Additive Masterbatch business acquisition with synergies
Specialty EBITDA $14M $117M $273M $500M
**
PolyOne Corporation 22
T R A N S A C T I O N O V E R V I E W
• Expected mid-2020, subject to regulatory approvals and customary closing conditions
Closing
Conditions /
Timing
• Committed financing in place
• Permanent financing to be combination of available cash on-hand, new debt and equity component to limit leverage
• Equity issuance of $400 to $500MM
• Target net leverage below 3.5x, 3.1x synergized, with intention to de-lever below 3.0x within 2 years
PolyOne Corporation 23
• $1.45 B net purchase price
• Represents 11.1x adjusted EBITDA (excluding synergies), 7.6x adjusted EBITDA (including synergies)
• Pre-tax synergies of $60MM expected to be fully realized by the end of 2023
• Synergies realized from sourcing, operational, technology / commercial, and general administrative
Transaction
Value
Synergies
Estimated Synergy Breakdown
$60MM
• Expect EBITDA synergies of $60MM
– Proven integration expertise with a decade of acquisition experience
– Administrative synergies reflect reduction of duplicative internal and
third-party costs
• Run rate synergies of $20MM by the end of Year 1 with $60MM
achieved by the end of Year 3
• Significant additional opportunity for geographical expansion
– Clariant Color & Additive Masterbatch business has complementary
regional presence in key growth areas including India & Southeast
Asia
• Opportunity to accelerate growth with a combined portfolio of
innovative solutions aligned with sustainability megatrends
Sourcing
Operational
30%
Administrative
30%
PolyOne Corporation 24
S I G N I F I C A N T S Y N E R G Y O P P O R T U N I T I E S
C A P I T A L S T R U C T U R E / L E V E R A G E
PolyOne Corporation 25
At Close Year 1 Year 2
3.2x
3.5x
3.1x
2.6x
Pro Forma with Synergies
2019E PF
Two year leverage goal
(1) Pro Forma Capitalization is for illustrative purposes only; amounts may vary depending on various market and other factors.
https://www.avient.com/news/avient-opens-cycleworks-innovation-center-advance-circular-economy-and-recycling-goals
The demonstration plant mimics real world recycling in a research environment.
What role do color and additives play in recyclability?
CycleWorks further strengthens our recycling focus and ability to enable our partners’ recyclability goals.”