 "Image courtesy: AkzoNobel")
AkzoNobel will acquire the industrial coatings business of BASF’s Coatings division for Euro 475 million (about $ 530 million). The transaction would include technologies, patents and trademarks, as well as the transfer of two dedicated production sites – Deeside (England) and Vanderbijlpark (South Africa).
BASF and AkzoNobel intend to finalise and sign detailed transaction documents in due course. The planned transaction is subject to the required consultation with employee representatives and certain regulatory approvals. BASF and AkzoNobel intend to complete the transaction by the end of 2016.
“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. We are continuing to deliver on our strategy to achieve our vision of leading market positions delivering leading performance,” said Ton Buchner, CEO, AkzoNobel.
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BASF’s industrial coatings business generated sales of approximately Euro 300 million (about $ 335 million) in 2015 and supplies products for a number of end uses, including coil, furniture foil and panel coatings, as well as coatings for wind energy plants, general industry and commercial transport.
With the sale of industrial coatings business, BASF will further strengthen its focus on its core automotive OEM and automotive refinish coatings businesses as well as the leading decorative paints business with its brand Suvinil in Brazil. BASF’s coatings division achieved global sales of about Euro 3 billion in 2014.
