In a move to further strengthen its position in China, AkzoNobel has reached an agreement with Sherwin-Williams to acquire its Chinese decorative paints business, known within Sherwin-Williams as the Chinese Architectural Paint business. Completion, which is subject to regulatory approvals, is expected in the second half of 2023.
The business has an annual revenue of about €100 million and employs around 300 people. The transaction includes the Huarun brand, which has a long history and is well recognized in China.
The intended acquisition follows on from a series of recent acquisitions by AkzoNobel across paints and coatings over the last years, including Titan Paints in Spain and Portugal, New Nautical Coatings in the United States, Grupo Orbis in Latin America and, most recently, Lankwitzer Lackfabrik in Germany.
“Acquiring the Chinese Decorative Paints business from Sherwin-Williams will help us to deliver our growth ambitions in tier-three to tier-five geographical areas in China. This intended acquisition is a strong strategic fit and our current business is best placed to unlock the full potential, thereby offering new opportunities for employees and customers,” said AkzoNobel CEO Greg Poux-Guillaume.
“Acquiring this business from Sherwin-Williams, and especially their renowned decorative paints brand ‘Huarun’ will strongly complement our existing premium-focused Dulux product portfolio. This will give our customers access to a more diverse and stronger offering. We look forward to welcoming these employees to the AkzoNobel China family and are excited about the opportunities we can achieve together,” said Mark Kwok, director decorative paints North Asia.
Learn more at www.akzonobel.com.
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