PITTSBURGH – PPG Industries will acquire AkzoNobel's North American architectural coatings business for $1.05 billion. Announced Dec. 14, the definitive agreement between PPG and AkzoNobel NV of Amsterdam, is expected to close in early second quarter 2013.
PPG said the acquisition "more than doubles" its architectural wood coatings presence in North America.
“This acquisition continues the accelerated pace of our business portfolio transformation through further expansion of our coatings businesses,” PPG Chairman and CEO Charles E. Bunch said in a statement. “It is also an attractive way to significantly increase our scale in the North American architectural paint market, which we anticipate will benefit from a prolonged construction market recovery.”
Ton Büchner, CEO of AkzoNobel, added, “Over the past four years, the team has done a great job in turning the North American Decorative Paints business around. I am pleased that we have found a respected company to take over the business. This agreement is a good outcome for all stakeholders.”
Included in the acquisition are all of AkzoNobel's North American architectural coatings manufacturing and distribution facilities, paint stores, product lines and employees related to the production, sale and distribution of architectural coatings in the United States, Canada and the Caribbean. Product brands include: Glidden, Flood, Liquid Nails, Sico and CIL. According to the news release, PPG will also license the Dulux, Devoe and Sikkens brands.
AkzoNobel had 2011 revenues in North America of approximately $1.5 billion. Bunch said the acquisition will expand PPG's customer reach in the three architectural coatings distribution channels and enhance the company's presence with independent paint dealer channels.
Founded in 1883, PPG has its headquarters in Pittsburgh and has operations in more than 60 countries. Sales in 2011 were $14.9 billion.
Have something to say? Share your thoughts with us in the comments below.