Germany-based material supplier Covestro has signed an agreement on the sale of its 51 per cent share in the joint venture Pearl Covestro Polyurethane Systems FZCO – which operates systems house business in Dubai (United Arab Emirates) – to the current co-shareholder Pearl Industries Overseas Ltd.
In a March 2 news release, Covestro officials said the sale will generate proceeds “in the mid-single-digit million euro range.”
The divestment is part of Covestro’s ongoing portfolio optimization process, the news release said, and marks “a further step in the strategic focusing of the polyurethanes segment.”
The deal is expected to close in the first half of 2021.
The joint venture was established under the former name BaySystems Pearl in Dubai (United Arab Emirates) in 2006 and has supplied polyurethane foam systems for several projects in the region. The systems house business will continue to operate as Pearl Polyurethane Systems after the transaction is concluded. Covestro will remain a key supplier of polyurethane raw materials based on the contract signed.
Covestro already sold its North American systems house business in 2017. In 2019, the sale of the European systems house business with sites in the Netherlands, Denmark, Spain, and Germany, as well as further businesses in Italy followed.