Dutch paint and coatings manufacturer AkzoNobel will merge with its smaller American competitor, Axalta Coating Systems. The share-swap transaction will create a company valued at roughly USD 25 billion (CZK 521.1 billion).
Merger Terms and Expected Benefits
Shareholders of AkzoNobel are expected to own 55 percent of the newly merged group, while Axalta shareholders will hold 45 percent. The merger is expected to be completed between late 2026 and early 2027.
“This merger allows us to accelerate our growth ambitions by combining highly complementary categories,” said AkzoNobel CEO Greg Poux-Guillaume, who is expected to remain CEO of the merged company. The combined company will operate in more than 160 countries. Annual revenues are projected to reach USD 17 billion, with an adjusted EBITDA of USD 3.3 billion. The merger is expected to generate annual cost savings of USD 600 million.
Industry Context and Company Background
This agreement marks the second attempt to merge the two manufacturers. A previous attempt in 2017 failed because the companies could not agree on the terms. Tariffs and a slowing economy have negatively impacted the coatings sector. AkzoNobel recently lowered its profit outlook as customers spend less. It is also reworking its strategy to reduce costs and improve efficiency, closing several European plants and laying off 2,500 employees.
Axalta is a former division of DuPont, acquired by the Carlyle Group in 2013. The company went public a year later. Axalta is a leading global producer of automotive coatings, with brands such as Cromax, Spies Hecker and Standox. AkzoNobel’s best-known brand is Dulux, and in 2006 it acquired the Czech paint manufacturer Balakom.
Today’s agreement adds to a wave of consolidation in the coatings industry. In October, Carlyle agreed to buy a controlling stake in the coatings division of German chemical company BASF. Earlier in February, BASF agreed to sell its Brazilian coatings division to Sherwin-Williams for USD 1.15 billion, Bloomberg reported.
Source: ČTK
