Additive manufacturing pioneer Stratasys Ltd. has signed a definitive agreement to acquire the additive manufacturing materials business of Covestro AG. The acquisition is expected to be immediately accretive upon closing, and will include R&D facilities and activities; global development and sales teams across Europe, the United States, and China; a portfolio of approximately 60 additive manufacturing materials; and extensive IP comprising hundreds of patents and patents pending.
The purchase price is approximately €43 million ($43.8 million), plus additional inventory, less certain liabilities. In addition, there is a potential earn out of up to €37 million ($37.7 million), subject to the achievement of various performance metrics, said Stratasys in its announcement.
Covestro has been part of Stratasys’ third-party materials ecosystem, and the acquisition will benefit customers using multiple Stratasys 3D-printing platforms. Stratasys is already a distributor of Covestro’s Somos resins. Covestro brought Somos resins into its fold when it purchased DSM Functional Materials in October 2020 for €1.6 billion ($1.63 billion).
"Additive manufacturing is a growing, but also highly competitive market," commented Covestro Chief Financial Officer 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."
“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,” said Zeif.
The acquisition is expected to close during the first quarter of 2023, subject to regulatory approvals and satisfaction of other customary closing conditions. The majority of employees of the acquired entity will continue to be based in Geleen, Netherlands, and Elgin, IL.