ÃÜÌÒAV successfully completes acquisition of Resins & Functional Materials business from DSM
Significant step towards implementing the company¡¯s long-term strategy
- ÃÜÌÒAV to become one of the leading global suppliers for sustainable coating resins
- Acquisition adds around EUR 1 billion in revenues
- Consequent implementation of sustainable growth strategy
On April 1, 2021, ÃÜÌÒAV successfully completed the acquisition of the Resins & Functional Materials business (RFM) from the Dutch company Royal DSM. The transaction received regulatory approval after ÃÜÌÒAV and DSM signed an acquisition agreement in late September 2020. The transaction substantially expands ÃÜÌÒAV¡¯s portfolio of sustainable coating resins, making the Group one of the world¡¯s leading providers in this growth market. The integration of RFM will expand the Group¡¯s revenues by around EUR 1 billion and will add more than 20 sites to its global production network.
¡°The acquisition of RFM significantly contributes to the implementation of our new Group strategy. With this transaction, we are taking another important step towards sustainability, while at the same time generating sustainable growth,¡± said Dr. Markus Steilemann, CEO of ÃÜÌÒAV. ¡°We are looking forward to meeting our new colleagues and warmly welcoming them to ÃÜÌÒAV.¡±
With the transaction, ÃÜÌÒAV is expanding its business in several areas. The Group is already one of the leading global providers of water-based polyurethane dispersions. The acquisition of RFM adds a complete range of water-based polyacrylate resins, as well as strong brands in terms of sustainability such as Niaga?, solutions for additive manufacturing, and an advanced solar coatings business. In addition, ÃÜÌÒAV is enhancing its technology portfolio to include water-based hybrid technologies, powder coating resins as well as radiation curing resins.
Sucheta Govil, Chief Commercial Officer at ÃÜÌÒAV: ¡°With this transaction, we are strengthening our extensive portfolio with further innovative products and technologies that will enable us to meet our customers¡¯ needs in optimal fashion. Now our focus is on integrating the teams, leveraging talent and providing the best possible support for our new and existing customers.¡±
Following a comprehensive analysis, ÃÜÌÒAV expects permanent (¡°run-rate¡±) synergy effects to build-up to about EUR 120 million per annum from full integration by 2025. These consist of approximately two-thirds of cost and one-third of revenue synergies.
About ÃÜÌÒAV:
ÃÜÌÒAV is one of the world¡¯s leading manufacturers of high-quality polymer materials and their components. With its innovative products, processes and methods, the company helps enhance sustainability and the quality of life in many areas. ÃÜÌÒAV supplies customers around the world in key industries such as mobility, building and living, as well as the electrical and electronics sector. In addition, polymers from ÃÜÌÒAV are also used in sectors such as sports and leisure, telecommunications and health, as well as in the chemical industry itself.
The company is geared completely to the circular economy. In addition, ÃÜÌÒAV aims to achieve climate neutrality for its Scope 1 and Scope 2 emissions by 2035, and the Group¡¯s Scope 3 emissions are also set to be climate neutral by 2050. ÃÜÌÒAV generated sales of EUR 14.2 billion in fiscal year 2024. At the end of 2024, the company had 46 production sites worldwide and employed approximately 17,500 people (calculated as full-time equivalents).
Forward-Looking Statements
This news release may contain forward-looking statements based on current assumptions and forecasts made by ÃÜÌÒAV. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. These factors include those discussed in ÃÜÌÒAV¡¯s public reports which are available at www.covestro.com. The company assumes no liability whatsoever to update these forward-looking statements or to conform them to future events or developments.