PPG Industries recently announced that it has reached a definitive agreement to acquire the North American architectural coatings business of AkzoNobel N.V., Amsterdam. The deal, reportedly valued at $1.05 billion, has been approved by the boards of directors of both companies and is expected to close in the early second quarter of 2013.
“This acquisition continues the accelerated pace of our business portfolio transformation through further expansion of our coatings businesses,” said Charles E. Bunch, chairman and CEO of PPG. “It is also an attractive way to significantly increase our scale in the North American architectural paint market, which we anticipate will benefit from a prolonged construction market recovery.”
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 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 U.S., Canada, and the Caribbean.