Covestro Selling Additive Manufacturing to Stratasys
German engineering plastics producer Covestro has signed a definitive agreement to sell its Additive Manufacturing Business to US 3D printing specialist Stratasys for about €43 million. Closing of the deal is expected for the first quarter of 2023.
The Leverkusen-based company said there is also a potential earn-out of up to €37 million associated with the transaction, which is subject to the achievement of various performance metrics.
The sale of the business that provides material solutions for common polymer 3D printing processes includes R&D facilities, offices and production assets as well as the takeover of employees in the Netherlands, Germany, the US and China.
Products from the Resins & Functional Materials business that the engineering plastics maker acquired from DSM in 2021, with brands such as Somos and Addigy, are also part of the sale package.
Covestro said the decision to divest the activities is part of its ongoing portfolio optimization aimed at positioning itself more efficiently in its core markets and being able to focus greater attention on key customer industries.
"Additive manufacturing is a growing, but also highly competitive market," said Covestro CFO Thomas Toepfer. "We are convinced that Stratasys offers the optimal conditions to support the further growth of our former Additive Manufacturing Business in this field."
In May this year, Covestro and Stratasys extended their collaboration in fused deposition modelling (FDM) 3D printing technology with new validated filaments for the open material ecosystem.
Author: Dede Williams, Freelance Journalist
