DSM sheds solar coatings ops alongside resins, functional materials businesses
Source: Koninklijke DSM
Koninklijke DSM NV (AMS:DSM) has reached a EUR-1.6-billion (USD 1.88bn) deal to sell its Resins & Functional Materials business and associated activities, including the coatings activities of DSM Advanced Solar, to polymer company Covestro AG (ETR:1COV).
The businesses included in the deal represented EUR 1.012 billion of DSM’s total annual sales for 2019 and EUR 133 million of its total earnings before interest, tax, depreciation and amortisation (EBITDA) for the year. The transaction covers the coatings activities of DSM Advanced Solar, but not the operations in next-generation backsheets for photovoltaic (PV) modules as they remain with DSM.
Covestro said separately that this deal is a strategic growth opportunity to grow the revenues of its Coatings, Adhesives, Specialties (CAS) segment by more than 40%. It will add a complete range of water-based polyacrylate resins and water-based hybrid technologies, powder coating resins and radiation curing resins to Covestro’s technology portfolio.
The transaction is pending some approvals and is expected to close in the first half of 2021.