Covestro succesfully completed the acquisition of the Resins & Functional Materials business (RFM) from the Dutch company Royal DSM.
With the aim of becoming one of the the leading global suppliers for sustainable coating resins and further expanding its portfolio, Covestro acquired DSM’s Resins & Functional Materials business.
The transaction received regulatory approval after Covestro and DSM signed an acquisition agreement in late September 2020. 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 Covestro. “We are looking forward to meeting our new colleagues and warmly welcoming them to Covestro.”
Through the acquisition of RFM, Covestor is adding to its portfolio 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, Covestro is enhancing its technology portfolio to include water-based hybrid technologies, powder coating resins as well as radiation curing resins.
“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”, adds Sucheta Govil, Chief Commercial Officer at Covestro.
Following a comprehensive analysis, Covestro 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.