Polymer 3D printing solutions provider Stratasys Ltd. has moved to acquire the additive manufacturing materials business of Covestro AG. Consequently, the company considers the acquisition to be immediately accretive upon closing.
Specifically, Stratasys’ acquisition move will include Covestro’s R&D facilities, global development, and sales teams. Particularly, those across Europe as well as United States and China. In addition, this will cover Covestro’s portfolio of approximately 60 additive manufacturing materials and an extensive IP portfolio comprised of hundreds of patents and patents pending. The purchase price is approximately €43 million, plus additional inventory. In addition, there is a potential earnout of up to €37 million, subject to the achievement of various performance metrics.
Covestro has been a key part of Stratasys’ third-party materials ecosystem. Hence, the acquisition will benefit customers using multiple Stratasys 3D printing platforms, including its Origin P3™, Neo® stereolithography, and H350™ printers. Stratasys is already a distributor of Covestro’s Somos® resins and they are already available for Neo and Origin® One 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,” 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. (Furthermore), advance our strategy of providing the best and most complete polymer 3D printing portfolio in the industry.”
Stratasys expects to close the acquisition in the first quarter of 2023. Nonetheless, it will be subject to the receipt of regulatory approvals and satisfaction of other customary closing conditions. Most employees of the acquired entity will continue working in Geleen, Netherlands and Elgin, Ill.