Covestro completes acquisition of RFM from DSM
Covestro has completed the acquisition of the Resins & Functional Materials business (RFM) from the Dutch company Royal DSM. The transaction received regulatory approval after Covestro and DSM signed an acquisition agreement in late September 2020.
According to the company, 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.
With the transaction, Covestro 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 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.
Permanent synergy effects
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.
“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.”
