Covestro acquires sustainable coatings business from DSM

On October 12, Covestro announced that it had signed an agreement with DSM to acquire its resin and functional materials business (RFM). The transaction is expected to be completed in the first quarter of 2021, and requires regulatory approval, including antitrust licenses. Covestro agreed to purchase at a price of 1.61 billion euros and will combine equity and debt financing. This is an important step in Covestro's long-term strategic development by expanding the market with great development potential of sustainable coating resins, aiming to further achieve business growth through sustainable development and innovation.

Covestro stated that the integration of RFM will increase Covestro’s sales by approximately 1 billion euros and 141 million euros in earnings before interest, taxes, depreciation and amortization (EBITDA). Substantial strategic growth opportunities can increase sales of this business unit by more than 40% to approximately 3.4 billion euros.

Covestro CEO Xeroxen said that this acquisition will enable Covestro to enter the ranks of leading suppliers in the field of sustainable coating resins, and bring an extremely comprehensive and innovative product portfolio to create strong customer value. Xeroxen said: “This acquisition is an important step in Covestro’s corporate strategy. RFM will promote the company’s business growth. By combining the strong innovation capabilities of both parties, sustainable product portfolios, complementary technologies and customer industries, Covestro It will definitely create huge value, which is also a key step to promote innovation and realize the transition to a circular economy."

Xerox Wen believes that the integration of RFM will build a larger business area with stronger technical capabilities. Through this stronger growth platform, existing and future customers and employees will benefit. Covestro is already one of the leading manufacturers in the field of waterborne polyurethane dispersions. Through the acquisition of RFM, Covestro will increase a full range of water-based polyacrylate resin business and further enrich its technology portfolio, including a variety of water-based technologies, powder coating resins and radiation curing resin technologies. RFM has strong brands such as Niaga in sustainable development, additive manufacturing, and advanced solar anti-reflective coating business.