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INDUSTRIAL COATINGS BOOST

AkzoNobel buys BASF’s key business unit for $527m

AMSTERDAM, December 18, 2016

AkzoNobel, a leading global paints and coatings company, has finalised the acquisition of BASF’s global industrial coatings business, which supplies a range of products for industries including construction, domestic appliances, wind energy and commercial transport, strengthening its position as the global number one supplier in coil coatings.

Headquartered in Amsterdam, the Netherlands, the company boasts of well-known brands such as Dulux, Sikkens, International, Interpon and Eka. It has 45,000 employees in around 80 countries.

Completing this transaction also positions AkzoNobel as a full-service coatings provider for the protection and maintenance of wind turbines, providing essential protection to wind power stations around the globe, said a statement from Dutch company.

The transaction is based on a deal value of €475 million ($527 million), with BASF’s industrial coatings business generating revenue close to €300 million ($333 million) in 2015.

AkzoNobel, which is also a major producer of specialty chemicals, said the transaction includes relevant technologies, patents and trademarks, as well as two manufacturing plants in the UK and South Africa.

Approximately 400 employees from BASF’s industrial coatings business join AkzoNobel, bringing expertise to innovate and serve an expanded customer base worldwide, it stated.

During the next two years, a portion of the BASF production volume will be transferred to existing nearby AkzoNobel manufacturing facilities, said a top official.

"This will bring synergies and additional production efficiencies. The full profitability of the acquisition will be realised by the end of 2018, in line with the stated financial guidance from AkzoNobel for its existing performance coatings business," remarked Conrad Keijzer, the company’s executive committee member responsible for performance coatings.

Welcoming the new BASF employees, Keijzer said: "This business is an excellent strategic fit and will strengthen our leading market positions, particularly in the coil, protective and wood coatings sectors in Europe."

"We will be able to offer new products and maintenance solutions - such as protective coatings for wind turbine blades - and service a broader customer base to drive growth," he stated.

Consistently ranked as a leader in sustainability, the Dutch firm is dedicated to energising cities and communities while creating a protected, colourful world where life is improved by what we do, said Keijzer.
 
"This transaction is fully aligned with the AkzoNobel strategy of pursuing value creating bolt-on acquisitions," he added.-TradeArabia News Service




Tags: Dutch | BASF | AkzoNobel | Industrial coating |

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