Covestro to sell European PU systems business to HIG Capital

German materials firm Covestro is to sell its European Systems Houses business to US investment firm HIG Capital. The sales proceeds amount to a high-double-digit Euro million sum. Covestro says the decision to sell the systems houses was taken as part of its ongoing portfolio optimisation process that includes the sale of Covestro’s North American spray PU foam systems house in 2017.

With its new owner HIG, the European Systems Houses now have the perspective to position itself as an independent, focused player for mid-sized customers. In Asia with its developing PU markets, Covestro will continue to serve its customers through its established systems houses network.

The systems houses are part of the company’s PU segment and are offering tailor-made PU systems for customers. The European Systems Houses business comprises facilities in the Netherlands, Denmark, Spain, Germany and further businesses in Italy. Approximately 250 employees are generating annual sales of some EUR230 million.