AMSTERDAM, NETHERLANDS--(Marketwire - Dec 14, 2012) -
* Decorative Paints North America sold to PPG at a value of $1.05 billion.
* Cash proceeds of approximately $875 million.
* Deal includes Decorative Paints business in the US, Canada and Puerto
* Completion expected during Q2 2013.
AkzoNobel today announced the divestment of its North American Decorative
business to PPG Industries, Inc. (PPG), for the value of $1.05 billion. In
2011, the North American Decorative Paints business had revenues of $1.5
billion, around 7 percent of AkzoNobel's total 2011 revenue.
AkzoNobel continues to have a strong presence in North America through its
Performance Coatings and Specialty Chemicals businesses, with combined 2011
revenues of over $2.7 billion and close to 5,000 employees.
The company made the decision to divest Decorative Paints North America
following a successful four year turnaround. AkzoNobel has made the
choice to focus its Decorative Paints Business Area on key markets in
its strong positions in high growth regions.
The cash proceeds of approximately $875 million will be deployed to support
company's strategy. This includes investing in organic growth for
reducing net debt. More details on AkzoNobel's priorities will be disclosed
during the Strategy Update on February 20, 2013.
"Over the past four years, the team has done a great job in turning the
American Decorative Paints business around," said Ton Büchner, CEO of
"We are convinced that Decorative Paints can get better returns from our
positions in Europe and high growth markets. I am pleased that we have
respected company to take over the business. This agreement is a good
for all stakeholders."
"This acquisition continues the accelerated pace of our business portfolio
transformation through further expansion of our coatings businesses," said
Charles E. Bunch, PPG chairman and CEO. "It is also an attractive way to
significantly increase our scale in the North American paint market."
AkzoNobel Decorative Paints in North America has around 5,000 employees and
operates 8 manufacturing sites. It has a number of successful brands,
Glidden in the US and Sico in Canada.
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AkzoNobel is a leading global paints and coatings company and a major
of specialty chemicals. We supply industries and consumers worldwide with
innovative products and are passionate about developing sustainable answers
our customers. Our portfolio includes well known brands such as Dulux,
International and Eka. Headquartered in Amsterdam, the Netherlands, we are
consistently ranked as one of the leaders in the area of sustainability.
operations in more than 80 countries, our 55,000 people around the world
committed to excellence and delivering Tomorrow's Answers Today™.
PPG Industries' vision is to continue to be the world's leading coatings
specialty products company. Through leadership in innovation,
color, PPG helps customers in industrial, transportation, consumer
construction markets and aftermarkets to enhance more surfaces in more ways
does any other company. Founded in 1883, PPG has global headquarters in
Pittsburgh and operates in more than 60 countries around the world. Sales
2011 were $14.9 billion. PPG shares are traded on the New York Stock
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Source: Akzo Nobel NV via Thomson Reuters ONE