Company News
September 30, 2020
Covestro To Acquire DSM Resins
Covestro to acquire DSM’s Resins & Functional Materials business
By Mary Page Bailey | September 30, 2020
Royal DSM N.V. (Geleen, the Netherlands) has reached an agreement to sell its Resins & Functional Materials and associated businesses (together, RFM) to Covestro AG (Leverkusen, Germany) for an Equity Value of €1.6 billion.
The proposed transaction is another step forward in DSM’s evolution as a purpose-led, science-based company operating in the fields of Nutrition, Health, and Sustainable Living. It follows DSM’s recent acquisitions of the Erber Group (expected to close shortly), Glycom, and CSK.
The transaction will include all of DSM’s Resins & Functional Materials businesses, including DSM Niaga, DSM Additive Manufacturing and the coatings activities of DSM Advanced Solar. These businesses represented €1,012 million of DSM’s 2019 total annual net sales and €133 million of DSM’s 2019 total EBITDA. DSM will provide re-stated figures for its Materials Cluster ahead of its Q3 results. DSM anticipates a book profit on the transaction to be recognized upon closing. DSM expects to receive approximately €1.4 billion net in cash following closing, including repayment of RFM’s net debt, and after transaction costs and capital gains tax.
The combination of RFM and Covestro will create a business of enhanced scale and technological capability that will benefit existing and potential customers as well as its employees through a stronger platform for growth. Completion of the transaction, which is subject to the customary conditions and approvals, is expected in H1, 2021.
Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of Royal DSM, commented: “This sale builds on our approach of actively managing our businesses, as DSM continues to evolve as a purpose-led, science-based company operating in the fields of Nutrition, Health and Sustainable Living. The deal delivers strong value to DSM and is strategically attractive for all parties. In Covestro, we recognize a company that shares similar views on culture and the value of sustainability. We know that Covestro will be a good owner of these businesses for customers, colleagues and other stakeholders.”
DSM Resins & Functional Materials, containing a Sustainable Coatings division and a Functional Materials division, provides highly-specialized products, such as resins for use in paints and other industrial applications, and optical fiber coatings. This includes DSM Niaga, a VOC-free adhesive and a proprietary production technology for fully-recyclable carpets, mattresses and furniture components.
September 30, 2020
Covestro To Acquire DSM Resins
Covestro to acquire DSM’s Resins & Functional Materials business
By Mary Page Bailey | September 30, 2020
Royal DSM N.V. (Geleen, the Netherlands) has reached an agreement to sell its Resins & Functional Materials and associated businesses (together, RFM) to Covestro AG (Leverkusen, Germany) for an Equity Value of €1.6 billion.
The proposed transaction is another step forward in DSM’s evolution as a purpose-led, science-based company operating in the fields of Nutrition, Health, and Sustainable Living. It follows DSM’s recent acquisitions of the Erber Group (expected to close shortly), Glycom, and CSK.
The transaction will include all of DSM’s Resins & Functional Materials businesses, including DSM Niaga, DSM Additive Manufacturing and the coatings activities of DSM Advanced Solar. These businesses represented €1,012 million of DSM’s 2019 total annual net sales and €133 million of DSM’s 2019 total EBITDA. DSM will provide re-stated figures for its Materials Cluster ahead of its Q3 results. DSM anticipates a book profit on the transaction to be recognized upon closing. DSM expects to receive approximately €1.4 billion net in cash following closing, including repayment of RFM’s net debt, and after transaction costs and capital gains tax.
The combination of RFM and Covestro will create a business of enhanced scale and technological capability that will benefit existing and potential customers as well as its employees through a stronger platform for growth. Completion of the transaction, which is subject to the customary conditions and approvals, is expected in H1, 2021.
Geraldine Matchett and Dimitri de Vreeze, Co-CEOs of Royal DSM, commented: “This sale builds on our approach of actively managing our businesses, as DSM continues to evolve as a purpose-led, science-based company operating in the fields of Nutrition, Health and Sustainable Living. The deal delivers strong value to DSM and is strategically attractive for all parties. In Covestro, we recognize a company that shares similar views on culture and the value of sustainability. We know that Covestro will be a good owner of these businesses for customers, colleagues and other stakeholders.”
DSM Resins & Functional Materials, containing a Sustainable Coatings division and a Functional Materials division, provides highly-specialized products, such as resins for use in paints and other industrial applications, and optical fiber coatings. This includes DSM Niaga, a VOC-free adhesive and a proprietary production technology for fully-recyclable carpets, mattresses and furniture components.
September 30, 2020
Johns Manville Expansion
Johns Manville Breaks Ground on New Polyiso Production Plant in Texas
(Photo: Business Wire)
September 22, 2020 06:01 AM Eastern Daylight Time
DENVER–(BUSINESS WIRE)–Johns Manville (JM), a global building and specialty products manufacturer and a Berkshire Hathaway Company, broke ground this month on a new production plant in Hillsboro, Texas.
“Increasing the availability of our products while creating new jobs is a win-win.”
The plant, which is projected to be completed by mid-2022, will manufacture polyiso products including ENRGY 3® roof insulation, ProtectoR® HD high density cover board, AP® Foil Faced Foam sheathing and GoBoard® tile backer. These products are preferred in the market due to their high R-value per inch and the strength and durability they offer.
“We continue to invest in our business, customers and communities,” said Joe Smith, President of Roofing Systems at Johns Manville. “Increasing the availability of our products while creating new jobs is a win-win.”
When complete, the Hillsboro plant will employ more than 50 people and include a JM roofing distribution center. The warehouse will stock many JM products, including TPO and accessories to expand customer service. Hughes Commercial Real Estate and Development will develop the site and FA Peinado Construction will be the general contractor.
The groundbreaking in Hillsboro comes on the heels of a recent expansion of JM’s Milan, Ohio, roofing products plant. That expansion increased the facility’s production capacity and added approximately 50 jobs.
Career opportunities at all JM facilities can be found at JM.com/en/Careers.
September 30, 2020
Johns Manville Expansion
Johns Manville Breaks Ground on New Polyiso Production Plant in Texas
(Photo: Business Wire)
September 22, 2020 06:01 AM Eastern Daylight Time
DENVER–(BUSINESS WIRE)–Johns Manville (JM), a global building and specialty products manufacturer and a Berkshire Hathaway Company, broke ground this month on a new production plant in Hillsboro, Texas.
“Increasing the availability of our products while creating new jobs is a win-win.”
The plant, which is projected to be completed by mid-2022, will manufacture polyiso products including ENRGY 3® roof insulation, ProtectoR® HD high density cover board, AP® Foil Faced Foam sheathing and GoBoard® tile backer. These products are preferred in the market due to their high R-value per inch and the strength and durability they offer.
“We continue to invest in our business, customers and communities,” said Joe Smith, President of Roofing Systems at Johns Manville. “Increasing the availability of our products while creating new jobs is a win-win.”
When complete, the Hillsboro plant will employ more than 50 people and include a JM roofing distribution center. The warehouse will stock many JM products, including TPO and accessories to expand customer service. Hughes Commercial Real Estate and Development will develop the site and FA Peinado Construction will be the general contractor.
The groundbreaking in Hillsboro comes on the heels of a recent expansion of JM’s Milan, Ohio, roofing products plant. That expansion increased the facility’s production capacity and added approximately 50 jobs.
Career opportunities at all JM facilities can be found at JM.com/en/Careers.
September 30, 2020
Dow Outlines Restructuring Plans
Dow outlines actions to deliver structural cost improvements and further enhance competitiveness
Wed September 30, 2020 6:00 AM|Business Wire|About: DOW
Today Dow will close the sale of its rail infrastructure assets at six North American sites; transaction to close three months earlier than planned and demonstrates best-owner mindset and continued evaluation of non-revenue-generating assets across its global portfolio
MIDLAND, Mich.–(BUSINESS WIRE)– Dow Inc. (DOW) today outlined the series of actions it will take to achieve previously announced structural cost improvement targets and further enhance its long-term competitiveness as the global economy recovers from the coronavirus pandemic.
As announced during the Company’s second quarter earnings on July 23, 2020, Dow is implementing a restructuring program to reduce its global workforce costs by approximately six percent and to rationalize certain manufacturing assets. These actions are expected to result in total annualized EBITDA savings of more than $300 million by the end of 2021.
Manufacturing asset impacts include:
- Industrial Intermediates & Infrastructure will rationalize its asset footprint by shutting down certain amines and solvents facilities in the United States and Europe as well as select small-scale downstream polyurethanes manufacturing facilities.
- Performance Materials & Coatings will shut down manufacturing assets, primarily small-scale coatings reactors, and will also rationalize its upstream asset footprint in Europe and in the United States and Canada by adjusting the supply of siloxane and silicon metal to balance to regional needs.
“Given the expected gradual and uneven global economic recovery from COVID-19, we announced in July that we are taking necessary actions to continue to optimize our asset footprint, reduce structural costs and enhance the competitiveness of our business over the long-term,” said Jim Fitterling, Dow chairman and CEO. “We continue to stay focused on delivering strong cashflow, strengthening our financial profile and maximizing our operational advantages, and we remain well positioned to capture significant growth as market conditions improve.”
The Company will record a charge in the third quarter of 2020 for costs associated with the restructuring program activities. In total, these costs are expected to be in the range of $500 million to $600 million and will consist of severance and related benefit costs; costs associated with exit and disposal activities; and asset write-downs and write-offs.
The restructuring program is in addition to the $500 million of operating expense savings Dow will achieve by the end of 2020. The Company also remains on target to achieve its reduced target of $1.25 billion for capital expenditures in 2020, down from $2 billion in 2019.
Dow will involve local stakeholders as defined in each country and in compliance with relevant information and consultation processes.
Dow also confirmed that today it will close the sale of its rail infrastructure assets at six North American sites to Watco, three months ahead of its initial planned closing, for cash proceeds in excess of $310 million. Earlier this month the Company also announced plans to divest certain marine and terminal operations and assets to Vopak Industrial Infrastructure Americas for cash proceeds of $620 million, which is expected to close by year-end.
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