Chem366 —
- Covestro to become a leading global supplier of sustainable coating resins One of
- Acquisition will increase sales by about 1 billion euros
- Use this to implement a sustainable growth strategy
On April 1, 2021, Covestro successfully completed the Acquisition of the Resins and Functional Materials business (RFM) of the Siman Group. The deal received regulatory approval after Covestro and DSM signed an acquisition agreement at the end of September last year. The transaction significantly expands Covestro’s product portfolio in the field of sustainable coating resins, making it one of the world’s leading suppliers in this high-growth market. The integration of RFM will boost Covestro’s sales by around EUR 1 billion and add more than 20 sites to its global production network.
“The acquisition of RFM is an important step in the implementation of our new group strategy. Through this transaction , we have taken another important step towards sustainable development while advancing sustainable growth.” said Dr. Markus Steilemann, CEO of Covestro, “We look forward to meeting our new colleagues and warmly welcome them to join Covestro. Xtron.”
Through this acquisition, Covestro will expand its business in some fields. Covestro is already one of the leading manufacturers in the field of waterborne polyurethane dispersions. With the acquisition of RFM, Covestro will add a full range of waterborne polyacrylate resins business, strong brands in the field of sustainable development such as Niaga®, a series of additive manufacturing solutions, and advanced solar anti-reflection Coating business. In addition, Covestro will further enrich its technology portfolio, which includes various water-based technologies, powder coating resins and radiation-curing resin technologies.
Sucheta Govil, Chief Commercial Officer of Covestro, said: “This transaction will bring us more innovative products and technologies, and enhance our broad product portfolio, so that we can best meet customer needs. Now, our focus is on integrating teams, leveraging talent advantages, and doing our best for our Provide support to new and existing customers.”
After a comprehensive analysis, Covestro expects that by 2025, after the completion of the full integration, the long-term The value created by the synergies is expected to amount to approximately EUR 120 million per annum, comprising approximately two thirds of cost synergies and one third of revenue synergies.
