Stratasys acquires Covestro Additive Manufacturing Business
EUR 43 million sale includes R&D facilities, offices and employees in Europe, U.S. and China
Global AM market leader Stratasys has signed a definitive agreement to acquire the Covestro Additive Manufacturing Business. For Covestro, the selling price amounts to approximately €43 million. In addition, there is a potential earn-out of up to €37 million, which is subject to the achievement of various performance metrics.
With the decision to sell the Covestro Additive Manufacturing Business, the company continues in its portfolio optimization efforts in order to position itself even more efficiently in the market and to be able to place greater focus on its extensive offering for customers in its core industries.
Covestro has been a key part of Stratasys’ third-party materials ecosystem, and the acquisition will benefit customers using multiple Stratasys 3D printing platforms, including its Origin P3, Neo stereolithography, and H350 printers. Stratasys is already a distributor of Covestro’s Somos resins and they are already available for Neo and Origin One 3D printers.
“Innovative materials are the fuel of additive manufacturing and translate directly into the ability to create new use cases for 3D printing, particularly in the production of end-use parts like dental aligners and automotive components,” said Stratasys CEO Dr. Yoav Zeif. “The acquisition of Covestro’s highly regarded Additive Manufacturing business positions us to further grow adoption of our newest technologies. We will now have the ability to accelerate cutting-edge developments in 3D printing materials, and advance our strategy of providing the best and most complete polymer 3D printing portfolio in the industry.”
Covestro’s divested business includes employees, Research & Development facilities, production assets and offices in the Netherlands, Germany, the U.S. and China as well as access to a large network of partners globally. The business offers material solutions for common polymer 3D printing processes.
“Additive manufacturing is a growing, but also highly competitive market,” said Dr. Thomas Toepfer, CFO of Covestro. “We are convinced that Stratasys offers the optimal conditions to support the further growth of our former Covestro Additive Manufacturing Business in this field.”
The portfolio of the Covestro Additive Manufacturing Business also includes products from the Resins & Functional Materials business acquired from DSM in 2021. It includes brands such as Somos and Addigy. Covestro had acquired the Somos brand along with all other AM-related assets from Royal DSM less than two years ago, in October 2020.
The transaction included all of DSM’s Resins & Functional Materials businesses, including DSM Additive Manufacturing and all sustainable coating resins-related businesses.
Royal DSM was one of the very first firms to begin offering third-party materials for industrial AM systems and applications. The company started by offering photopolymer resins (under the Somos brand), expanding into SLS powders as well as filaments and pellets for extrusion. Shortly before that sale, DSM had acquired part of Clariant’s AM filament business.
The transaction for Stratasys’ acquisition of the Covestro Additive Manufacturing Busines is planned to be closed in the first quarter of 2023.