Covestro sells its sheets outlet in the USA
| Subj: New capacity
German-based materials manufacturer Covestro continues to optimize its portfolio. As part of this strategy the company intends to sell its global Polycarbonates (PCS) sheets business. PCS sheets are highly durable and free formable sheets that are used in public transportation, roofing systems or signage applications.
As a first step, Covestro’s PCS sheets business located in Sheffield (US), which generated sales of about USD 170 million in 2017, has been sold to US-based acrylics sheets manufacturer Plaskolite LLC. The deal will be conducted as an asset deal, which means that as well as the transfer of dedicated intellectual property and fixed assets, employees will join Plaskolite. Operations will continue at the current facility. The companies agreed on a purchase price in the high-double-digit million US Dollar range. Closing is expected to be completed in the third quarter of 2018.
“We continuously evaluate and optimize our portfolio to secure future growth and value creation. During that process it became clear that our sheets business will not be a strategic fit to our Polycarbonates business in the long term,” said Covestro CEO Patrick Thomas. “We therefore decided that it can develop and grow better under a new owner and we are happy to have found a great buyer for our US outlet with Plaskolite.”
For its outlets in Europe, the company will soon open a separate bidding process and in due course will announce details regarding its remaining outlets in the Asia-Pacific region.