Leverkusen, Germany – Covestro is buying DSM's Resins & Functional Materials business for EUR1.61bn, adding a number of blocked isocyanate, aromatic urethane acrylates as well as solvent- and water-borne urethane systems.
The new business will sit in Covestro's Coatings, Adhesives, Specialties (CAS) division, and it should add EUR1bn/year to the company's turn over. This is likely to become an annual increase in EBITDA of around EUR141bn.
It will increase CAS revenue by around 40% in a normal year, the company said. Covestro plans to offer more shares to raise EUR450m of the price.
If the deal clears all of the regulatory hurdles, it is likely to close in the first quarter of 2021.