Covestro
Polymer materials company Covestro has agreed a €1.61 billion acquisition of DSM’s Resins & Functional Materials (RFM) business, which includes its additive manufacturing offering.
With some regulatory approvals still required, the deal is not expected to be fully completed until H1 of 2021. It comes just a few months after DSM acquired a portion of Clariant's 3D printing business.
Covestro has sought the acquisition of DSM’s RFM business enhance its scale and technology capabilities, adding around €1 billion in revenues. The company believes the integration of DSM’s product offering will not only help it become a leader in the delivery of water-based hybrid technologies, powder coating resins and radiation curing resins, but significantly improves its standing in the ‘attractive high growth segment’ of additive manufacturing.
Prior to the acquisition, most of Covestro's work within the 3D printing sector has come via its partnership with Polymaker, with them unveiling a 3D printing fabric offering earlier this year and three polycarbonate materials last year. DSM, meanwhile, has had a greater presence in the industry and has helped to establish 3D printing adoption and application in a host of vertical markets, supplying high-performance polymers for Fused Deposition Modelling, Stereolithography and Selective Laser Sintering to the likes of Briggs Automotive Company and Toyota Motorsport.
With products and connections like this, Covestro expects to become an ‘even more attractive R&D partner for customers’ and to help ‘drive innovation and advance sustainability across integrated customer industries.’
“This acquisition is an important step for our corporate strategy,” commented Covestro CEO Dr Markus Steilmann. “RFM enhances the growth trajectory of our business. By combining our strong innovation capabilities, sustainable product portfolios as well as complementary technologies and customer industries, we will unlock significant value. At the same time, it is also a key step to drive innovation for the transition towards a circular economy.”
“The acquisition is strategically and financially a perfect opportunity for us to pursue our long-term growth strategy at highly attractive conditions and tangible synergies. With the chosen financing structure, we are striking the right balance between equity and debt,” added Dr. Thomas Toepfer, Covestro CFO and Labour Director. “We look forward to welcoming our new colleagues under the Covestro roof soon. Together, we will work towards bringing our joint potential to life.”
A DSM statement on the takeover read: “This transaction represents a logical step in the strategy of the business. We believe it is positive news for the future of the Additive Manufacturing business and that Covestro is the right company to develop the business going forward.”
