All Posts from March 27, 2018

Akzo Nobel to Sell Specialty Chemicals to Carlyle & GIC

The Netherlands Akzo Nobel has announced the sale of 100 percent of its Specialty Chemicals business to U.S. private equity Carlyle Group and Singapore’s GIC for  €10.1 billion ($12.5 billion), including debt.

“This is the outcome of a thorough dual-track process during which the boards of Akzo Nobel carefully considered both a legal demerger and a private sale,” the Dutch group said. “The board of management and supervisory board concluded that a private sale to The Carlyle Group and GIC is in the best interests of Akzo Nobel, Specialty Chemicals and its respective stakeholders, including employees, shareholders and customers.”

The net proceeds of the deal are expected to amount to €7.5 billion, Akzo Nobel said, with the bulk going to shareholders. The transaction creates two focused and high performing businesses – Paints and Coatings, and Specialty Chemicals. The Dutch group had revealed in March 2017 that it was reviewing strategic options for the separation of its specialty chemicals business, shortly after rejecting a second takeover bid for the entire group by U.S. rival PPG Industries, and was seen as a move to thwart PPG (GM March 24, 2017).

“The Carlyle Group has a global presence and the financial capacity to enable the Specialty Chemicals business to achieve its full potential. Carlyle has extensive experience investing in chemicals, unlocking long-term potential and creating value in its portfolio companies,” Akzo Nobel, Thierry Vanlancker, CEO said.

Today’s deal is subject to regulatory approvals and is expected to be concluded before the end of the year.