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AkzoNobel completes acquisition of BASF Industrial Coatings business

December 16/2016

MOSCOW (MRC) -- AkzoNobel has finalized the acquisition of BASFs 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, said the company on its site.

The transaction includes relevant technologies, patents and trademarks, as well as two manufacturing plants in the United Kingdom and South Africa. Approximately 400 employees from BASFs Industrial Coatings business join AkzoNobel, bringing expertise to innovate and serve an expanded customer base worldwide.

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.

The transaction is based on a deal value of EUR475 million, with BASFs Industrial Coatings business generating revenue close to EUR300 million in 2015.

During the next two years, a portion of the BASF production volume will be transferred to existing nearby AkzoNobel manufacturing facilities. This will bring synergies and additional production efficiencies. The full profitability of the acquisition will be realized by the end of 2018, in line with the stated financial guidance from AkzoNobel for its existing Performance Coatings business.

"We are pleased to welcome our new colleagues to AkzoNobel" said Conrad Keijzer, the companys Executive Committee member responsible for Performance Coatings.

"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."

This transaction is fully aligned with the AkzoNobel strategy of pursuing value creating bolt-on acquisitions.

BASF is the leading chemical company. It produces a wide range of chemicals, for example solvents, amines, resins, glues, electronic-grade chemicals, industrial gases, basic petrochemicals and inorganic chemicals. The most important customers for this segment are the pharmaceutical, construction, textile and automotive industries.

Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
Author:Anna Larionova
Tags:compounding, coatings, AkzoNobel, BASF.
Category:General News
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