(RTTNews) – Specialty chemicals company Covestro (CVVTF.PK, COVTY.PK) Wednesday said it has signed an agreement to acquire the Resins & Functional Materials business or RFM from Royal DSM (RDSMY.PK).
The total purchase price is 1.61 billion euros, corresponding to a net enterprise value of approximately 1.55 billion euros.
Closing of the transaction is expected for the first quarter of 2021 and is subject to regulatory approvals, including antitrust clearance.
Covestro said the acquisition is in line with its long-term corporate strategy to strengthen its sustainable and innovation-driven businesses.
The integration of RFM will add about 1 billion euros in revenues and an EBITDA of 141 million euros.
According to the firm, the deal is a substantial strategic growth opportunity to expand revenues of its Coatings, Adhesives, Specialties segment by more than 40% to about 3.4 billion euros.
Covestro expects permanent synergy effects to build-up to about 120 million euros per