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DSM completes sale of resins and functional materials business to Covestro

April 07/2021

MOSCOW (MRC) -- DSM says it has completed the sale of the resins & functional materials businesses to Covestro for EUR1.6 billion (USD1.9 billion), including EUR1.4 billion in cash, as per the company's press release.

It included DSM Niaga, DSM additive manufacturing, and the coatings activities of the DSM advanced solar business, which together represented EUR1.01 billion of DSMs 2019 total annual net sales and EUR133 million of DSMs 2019 total EBITDA.

The deal was initially signed in September 2020 and remains subject to approval.

DSM expects to book a profit on the transaction of around EUR540 million.

Following analysis, Covestro expects permanent run rate synergy effects to build up to EUR120m/year from full integration by 2025, consisting of two-thirds cost and one-third revenue synergies.

As MRC reported earlier, Covestro closed the sale of its European polycarbonates (PC) sheets business to the Munich-based Serafin Group effective January 2, 2020. This includes key management and sales functions throughout Europe as well as production sites in Belgium and Italy.

According to MRC's ScanPlast report, Russia's overall consumption of PC granules (excluding exports from Belarus) totalled 8,100 tonnes in January 2021, up by 20% year on year (6,800 tonnes a year earlier).

Covestro (formerly Bayer MaterialScience) is an independent subgroup within Bayer. It was created as part of the restructuring of Bayer AG from the former business group Bayer Polymers, with certain of its activities being spun off to Lanxess AG. Covestro manufactures and develops materials such as coatings, adhesives and sealants, polycarbonates (CDs, DVDs), polyurethanes (automotive seating, insulation for refrigerating appliances) etc. With 2020 sales of EUR 10.7 billion, Covestro has 33 production sites worldwide and employs approximately 16,500 people (calculated as full-time equivalents).


mrcplast.com
Author:Margaret Volkova
Tags:Europe, PC, sheet extrusion, petrochemistry, coatings, paints and coatings, Bayer, Covestro, DSM, Russia.
Category:General News
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