German material manufacturer Covestro continues to optimize its product portfolio and will sell its global polycarbonate (PCS) business.
As part of the progress, Covestro has sold its board business in Sheffield, United States, to Plaskolite LLC, a producer of acrylic resin panels in the United States. A specific amount was not disclosed.
The business unit’s sales in 2017 were approximately 170 million US dollars (approximately 138 million euros), and the two companies reached an agreement for the purchase price of tens of millions of US dollars.
The transaction is expected to be completed on August 1.
CEO Patrick Thomas said: “We continue to evaluate and optimize our product portfolio to ensure the company's future growth and create greater value. From a long-term perspective, it is clear that our sheet metal business is strategically required in our polycarbonate business. No. Therefore, we believe that the business can grow under the leadership of the new owner and we are very happy to find a suitable buyer for the US business."
The company stated that for the sheet business in Europe, the company will soon launch a separate bidding process and timely announce the details of the rest of the business in the Asia Pacific region.
The transaction will be conducted as an asset transaction, which includes transfer of proprietary intellectual property and fixed assets, while employees will join Plaskolite.
In another statement, Plaskolite LLC, an acrylic sheet giant headquartered in Columbus, Ohio, said that the deal will combine the capabilities of two leading acrylic and polycarbonate manufacturing companies and will “change the North American sheet metal industry.”
Plaskolite president and chief executive officer Mitchell Grindley said: "This acquisition will bring reformation to Plaskolite and consolidate our leading position in the industry. It has expanded the scope of our services and further strengthened our partnership."
Plaskolite stated that the transaction will make it the only manufacturer to provide a complete transparent sheet product portfolio, including acrylic, polycarbonate, glycol modified PET and ABS