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M&As: DSM acquires India’s SRF Ltd’s specialty materials business; Henkel acquires US-based 3D printing/industrial inkjet company

M&As: DSM acquires India’s SRF Ltd’s specialty materials business; Henkel acquires US-based 3D printing/industrial inkjet company

Dutch chemicals firm DSM says that it has reached agreement with SRF Ltd., to acquire its Engineering Plastics business. DSM will pay a consideration of EUR38 million to SRF Ltd. The acquisition is expected to close in Q3 2019, subject to customary closing conditions.

The acquisition will further cement DSM Material’s’ position in India in engineering plastics in this fast-growing economy and fits with its strategic aim of generating leading positions in fast-growing economies. SRF’s Engineering Plastics business, founded in 1979, with its main operations located in Pantnagar (India), realised sales of about US$37 million in 2018 and has seen double-digit growth in recent years.

The company’s customers are well-known brands in the Automotive and Electrical & Electronics industries in India. Its business is highly complementary to DSM’s business in India and will allow DSM to further grow its business without having to significantly invest in capital expenditures. With strong anticipated market growth in the coming years, fueled by increasing domestic demand from a growing middle class and weight reduction/metal replacement in automotive, this acquisition will help DSM to meet the current and future needs of its customers in India and saves DSM a capacity investment required for further growth in India.

In 2018, DSM’s total sales in India, realized with about 550 employees, amounted to about EUR250 million, an increase of 17% compared to 2017. DSM is active in both Nutrition and Materials in the country. DSM Engineering Plastics operates a compounding facility and an R&T centre in Pune.

Meanwhile in other news, Henkel has acquired Molecule Corp., a privately owned, technology-driven enterprise focused on product innovation in additive manufacturing.

Molecule Corp. provides advanced solutions for 3D printing applications – including medical device, aerospace, automotive and a wide variety of consumer goods – as well as industrial inkjet materials, impacting a wide variety of markets. The US-based company is headquartered in Concord (CA), in the San Francisco Bay Area.

“Molecule Corp. and Henkel are an excellent fit,” says Philipp Loosen, Head of 3D Printing at Henkel. “Molecule’s strong 3D printing and inkjet resin technologies and digital development capabilities perfectly complement and strengthen our materials portfolio and build on our approach to offer a comprehensive range of customised additive manufacturing solutions.”

“Molecule's technology and engineering centre in California also broadens our global 3D printing footprint. We now provide 3D printing support to our customers in all major regions around the world,” adds Michael Todd, Head of Innovation at Henkel Adhesives Technologies.

The acquisition is in line with Henkel’s strategy to strengthen its portfolio through targeted acquisitions. It is complementing and strengthening Henkel’s technology portfolio for durable & functional parts in additive manufacturing (3D printing). It also enhances Henkel’s capacities to invent and develop new material or material components and grants access to industrial inkjet applications.

Both parties agreed to not disclose any financial details of the transaction.

(IMA)


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