AMSTERDAM, NETHERLANDS: AkzoNobel NV has completed the purchase of BASF’s global industrial coatings business, which supplies a range of products for industries including construction, domestic appliances, wind energy and commercial transport. This transaction strengthens its position as the global number one supplier of coil coatings.
The deal 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.
Completing this deal 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 €475 million, with BASF’s industrial coatings business generating revenue close to €300 million in 2015. This transaction is fully aligned with the AkzoNobel strategy of pursuing value-creating bolt-on acquisitions.
During the next two years, a part 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 realised by the end of 2018, in line with the stated financial guidance from AkzoNobel for its existing performance coatings business.
“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,” said Conrad Keijzer, executive committee member responsible for performance coatings, AkzoNobel.
Read More: AkzoNobel completes purchase of BASF’s industrial coatings biz
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