Lincoln International: Covestro to sell its European polyurethane systems houses business to H.I.G. Capital

Lincoln International is pleased to announce that Covestro has signed an agreement to sell its European polyurethane systems houses business, with approximately 250 employees and annual sales of Euro 230 million, to H.I.G. Capital. The business operates facilities in the Netherlands, Denmark, Spain, Germany and further businesses in Italy.

Covestro’s European systems houses business acts with high customer proximity. The business develops and formulates high custom-tailored two-component systems to manufacture a wide range of polyurethane products such as insulation materials, shoe soles, automotive parts or construction materials.

Diego König, Head of M&A at Covestro, said, “Lincoln International’s strong team featuring in-depth chemicals expertise and a hands-on approach throughout the entire process were instrumental in driving a highly competitive process and achieving a successful transaction with the right buyer.”

Dr. Holger Kleingarn, Managing Director at H.I.G. Capital, commented, “Following the carve-out from Covestro, the company will be a leading independent polyurethane systems business in Europe, and we aim to further expand its pan-European footprint organically and through add-on acquisitions. The business will continue to have strong ties with Covestro as a key supplier of raw materials. We are pleased that with Dr. Jörg Schottek, we have attracted a highly experienced CEO in the chemical industry to run the business.”

“Tailor-made polyurethane solutions are used in a wide range of applications across a large number of industries. Systems houses offer vital value-add to customers by providing product development, technical support and supply chain services. Polyurethanes are highly versatile materials and new applications are constantly being developed, which provide further demand for the services the Company offers,” said Dr. Johannes Natterer, Managing Director at H.I.G Capital.

Dr. Thomas Schneider, Vice President at Lincoln International, commented, “We are proud to have advised Covestro in creating a leading independent European polyurethane systems house. Polyurethanes are very versatile materials, and systems houses, with their value chain position close to the material processor, are passionate about finding the right formulation for customer needs. We are convinced that H.I.G. Capital will leverage the significant intrinsic potential and grow the business organically as well as through strategic add-on acquisitions.”

The closing of the transaction is expected for the second half of 2019 after the required antitrust clearance.

With 2018 sales of Euro 14.6 billion, Covestro is among the world’s largest polymer companies. Covestro has 30 production sites worldwide and employs approximately 16,800 people (calculated as full-time equivalents) at the end of 2018. For further information please refer to the Covestro website at

H.I.G. is a leading global private equity and alternative assets investment firm with over Euro 26 billion of equity capital under management. For more information, please refer to the H.I.G. website at

Lincoln International acted as the exclusive financial advisor to the seller, managing a highly competitive M&A process with strong interest from various parties.

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