Covestro sells PU business to private equity firm H.I.G. Capital
The newly formed business will trade under the name Plixxent.
Material supplier Covestro AG has completed the sale of its European polyurethane (PU) systems house business to U.S. private equity firm H.I.G. Capital.
The precise financial terms of the deal have not been disclosed, but in a Nov. 4 statement Covestro said the sales proceeds “amount to a high-double-digit euro million sum.”
The new business, which will trade under the name Plixxent, comprises facilities in the Netherlands, Denmark, Spain, Germany and further businesses in Italy.
Covestro described the sale as part of its “ongoing efforts to optimize its portfolio.”
“The systems houses are offering tailor-made polyurethanes systems for customers,” Covestro said. “With its new owner H.I.G. Capital, the European systems houses now have the perspective to position themselves as an independent, focused player for mid-sized customers.”
Covestro operates 30 production sites worldwide and employs approximately 16,800 people.