Covestro buying DSM’s resins and functional materials businesses
The deal will add a complete range of water-based polyacrylate resins to Covestro's product portfolio.
Germany-based material supplier Covestro has signed an agreement to acquire the resins and functional materials business (RFM) from Dutch firm Royal DSM.
The deal, for a reported price of 1.61 billion euros, will be financed through a combination of equity and debt instruments, and includes including DSM Niaga, DSM Additive Manufacturing, and the coatings activities of DSM Advanced Solar.
In a press release, Covestro said the acquisition of the RFM business will add a complete range of water-based polyacrylate resins and will expand its technology portfolio to include water-based hybrid technologies, powder coating resins, as well as radiation curing resins.
“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,” said Dr. Thomas Toepfer, Covestro CFO and labor director. “With the chosen financing structure, we are striking the right balance between equity and debt.”
The closing of the transaction is expected for the first quarter of 2021.