AkzoNobel announced plans to acquire BASF's Industrial Coatings business for approximately $530 million (€475 million). The planned acquisition is expected to be completed in the second half of 2016.
The announcement comes less than a week after paint and coatings specialist AkzoNobel confirmed rumors of talks to buy its German rival's business. Included are relevant BASF technologies, patents and trademarks, as well as two manufacturing plants, one in Deeside, England, and one in Vanderbijlpark, South Africa. BASF's Industrial Coatings business posted 2015 revenues of approximately $334 million (€300 million) and includes products for: furniture, flooring, millwork, foil and panel coatings; coil; wind energy and general industry; and commercial transport.
"This proposed acquisition will strengthen our position in the important coil coatings market and fits well with our existing business, allowing us to offer essential solutions to our customers," said AkzoNobel CEO Ton Büchner. "We are continuing to deliver on our strategy to achieve our vision of leading market positions delivering leading performance." The Dutch decorative paint, performance coatings and specialty chemicals firm has business units worldwide, including the United States and Canada. 2015 revenues were were $16.8 billion.
BASF said it will focus on it automotive OEM and refinish coatings businesses, and decorative paints, which include the Suvinil brand. “We have successfully developed our global industrial coatings business over the last years with a clear focus on attractive market segments. To further develop the business, we see positive growth prospects under the umbrella of AkzoNobel, which is a leading global player in industrial coatings,” said Markus Kamieth, president of BASF’s Coatings division.
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