Covestro signed an agreement to acquire the Resins & Functional Materials business (RFM) from Royal DSM.
With the acquisition of RFM, the company will add a complete range of water-based polyacrylate resins and will expand its technology portfolio to include water-based hybrid technologies, powder coating resins as well as radiation curing resins. RFM includes strong brands in terms of sustainability such as Niaga, as well as additive manufacturing, and an advanced solar coatings business.
Covestro will become one of the leading suppliers in the field of optical fiber coatings – a market segment with enormous future potential, including the future technology of 5G – and in the attractive high-growth segment of 3D-printing materials, showing an average growth rate of more than 20 percent.
Both businesses are committed to ambitious ESG (Environment, Social, Governance) goals and have an excellent and complementary research pipeline, especially in the area of sustainable high-performance raw materials for the coatings industry.
Integrating RFM into the CAS segment of Covestro creates significant opportunities to unlock incremental value. The company expects permanent (“run-rate”) synergy effects to build-up to about €120 million per annum from full integration by 2025.
These consist of approximately two-thirds of cost and one-third of revenue synergies and are generated amongst others through the alignment of purchasing, sales and administrative structures in the integrated business as well as cross-selling and the joint development of new high-performance products.
