The deal is expected to close in Q1 of 2023.
The automotive grill shown here on a Stratasys Neo800 stereolithography system was 3D-printed with clear Somos WaterShed CX 11122.
Stratasys has announced an agreement with Covestro to acquire the chemical company’s additive manufacturing business.
The deal includes a fixed amount of 43 million EUR and the potential earnout of up to 37 million EUR subject to the achievement of various performance metrics. It is expected to close in Q1 2023 and follows Stratasys' acquisitions of Origin, RPS and Xaar 3D in the last two years.
With this acquisition, Stratasys will integrate a portfolio of approximately 60 additive manufacturing materials, an IP portfolio that includes hundreds of patents and patents pending, and teams operating in R&D, sales and global development. Covestro significantly expanded its play in the 3D printing sector eighteen months ago with the 1.61 billion EUR acquisition of DSM’s Resins & Functional Materials business, which included its additive manufacturing offering. Less than two years after that deal was announced, Covestro has taken the decision to divest its 3D printing activities as it looks to place a greater focus on its ‘core industries,’ with Stratasys now set to incorporate its 3D printing materials expertise into its business.
Covestro has been working with Stratasys as part of its third-party materials ecosystem, while Stratasys is already a distributor of Covestro’s Somos resins through its Neo Stereolithography and Origin P3 offerings. Both parties believe the acquisition will benefit customers using the Origin P3, NEO Stereolithography and H350 SAF 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,” commented 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.”
"Additive manufacturing is a growing, but also highly competitive market," added Dr. Thomas Toepfer, CFO of Covestro. "We are convinced that Stratasys offers the optimal conditions to support the further growth of our former Additive Manufacturing Business in this field."
The acquisition is expected to close during the first quarter of 2023, and the transaction is subject to the receipt of 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, Ill.
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