Germany’s Covestro has agreed to sell its European polyurethanes systems houses business to private equity group H.I.G. Capital as part of its divestment of non-core assets.

The sale price was not revealed, although Covestro did say that proceeds were in the “high double-digit millions of euros.”

The business offers tailor-made PU systems from its facilities in the Netherlands, Denmark, Spain, Germany and Italy and generates annual sales of around €230 million. Covestro said operations will continue under H.I.G. at the current facilities, and the Leverkusen-based group will retain its strong ties with the systems houses as a key PU supplier.

“Providing tailor-made solutions, systems houses serve relevant market needs. However, in an advanced polyurethanes market like Europe we focus on a more centralized approach to efficiently address the needs of our customers,” said Covestro’s chief financial officer Thomas Toepfer.

Covestro added that with new owner H.I.G., the business now has the perspective to position itself as an independent, focused player for mid-sized customers.

The transaction is expected to close in the second half of 2019, subject to regulatory approval

Covestro sold its North American spray PU foam system house business to Accella Polyurethane Systems, a portfolio company of private equity company Arsenal Capital Partners, in April 2017.