PPG makes a billion-dollar deal with AkzoNobel
Pittsburgh-based PPG Industries reached a deal to acquire the North American architectural business of AkzoNobel, N.V., for $1.05 billion.
The acquisition includes the addition of about 600 AkzoNobel-owned paint stores, creating a combined network of about 1,000 company-owned stores serving the North American market.
The acquisition includes all AkzoNobel 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. Leading brands included are Glidden, Flood, Liquid Nails, SICO and CIL.
Charles Bunch, PPG chairman and CEO, referred to a “prolonged construction market recovery” in describing the deal. Bunch said the acquired business had 2011 revenues of about $1.5 billion and “notably expands our customer reach in all three major North American architectural paint distribution channels.”
Ton Büchner, CEO of AkzoNobel, said, “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.”
The transaction has been approved by the boards of directors of both companies and is expected to close in early second quarter 2013, subject to regulatory approvals.
Bunch added: “It also complements PPG's national home center strategy by extending our branded paint product offerings to more than 8,000 retail outlets,” he added, referencing AkzoNobel- and PPG-branded retail paint products. “And finally, it enhances our already strong presence in the independent paint dealer channel.”