Covestro successfully completed the acquisition of the Resins & Functional Materials (RFM) business from Dutch company Royal DSM. The transaction received regulatory approval after Covestro and DSM signed an acquisition agreement in late September 2020. The transaction substantially expands Covestro’s portfolio of sustainable coating resins.
“The acquisition of RFM contributes significantly to the implementation of our new Group strategy. With this transaction, we are taking another important step towards sustainability while generating sustainable growth, “said Dr. Markus Steilemann, CEO of Covestro.” We look forward to meeting our new colleagues and warmly welcoming them to Covestro”.
With the transaction, Covestro is expanding its business in several areas. The acquisition of RFM adds a full range of water-based polyacrylic resins, as well as strong sustainability brands such as Niaga®, additive manufacturing solutions, and an advanced solar coatings business. Additionally, Covestro is enhancing its technology portfolio to include water-based hybrid technologies, powder coating resins, and radiation curing resins.
Sucheta Govil, Covestro Chief Commercial Officer: “With this transaction, we are strengthening our broad portfolio with additional innovative products and technologies that will enable us to optimally meet the needs of our customers. Now our goal is to integrate teams, leverage talents, and provide the best possible support to our new and existing customers. ”
Following a comprehensive analysis, Covestro predicts that the permanent synergistic effects (“run-rate”) will reach around 120 million euros per year from full integration by 2025. These consist of approximately two-thirds of cost and one-third of revenue synergies.