AkzoNobel is to enhance its portfolio of sustainable technologies after signing an agreement with The Dow Chemical Company (Dow) to acquire its powder coatings activities. Financial details were not disclosed.
The deal will bring key technological know-how and significant synergy potential to AkzoNobel's Powder Coatings business, as well as enhancing the company's position in the US.
The powder coatings activities were purchased by Dow earlier this year as part of its acquisition of Rohm & Haas. This business achieves global sales of several hundred million dollars and employs around 700 people.
"This is a strategic acquisition which will enable us to further penetrate key industrial coatings segments," explained Leif Darner, the AkzoNobel Board member responsible for Performance Coatings. "By adding new powder technologies to our extensive portfolio we will be even better equipped to lead the way in meeting the increasing demand for innovative products with strong environmental profiles."
Operating powder coatings factories in the US, Europe and China, Rohm & Haas developed several important new technologies - especially for the automotive and architectural segments - while the deal will also add MDF and thermoplastic capabilities to AkzoNobel's existing expertise.
"Our intention is to move towards a more dedicated approach, whereby sites concentrate on specific technologies," added Rob Molenaar, Managing Director of AkzoNobel Powder Coatings. "These planned manufacturing enhancements and synergies will deliver improved operational efficiency and ultimately enable us to better serve our customers worldwide."
Powder coatings offer an attractive alternative to liquid coatings due to the fact that they are inherently sustainable because they contain no solvents and have application efficiency levels as high as 99 percent.
The transaction is expected to close during the second quarter of 2010, subject to customary closing conditions, including regulatory approvals. Consultations with employee representatives will be held as and when appropriate.
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AkzoNobel is proud to be one of the world's leading industrial companies. Based in Amsterdam, the Netherlands, we make and supply a wide range of paints, coatings and specialty chemicals - 2008 revenue totaled €15.4 billion. In fact, we are the largest global paints and coatings company. As a major producer of specialty chemicals we supply industries worldwide with quality ingredients for life's essentials. We think about the future, but act in the present. We're passionate about introducing new ideas and developing sustainable answers for our customers. That's why our 58,000 employees - who are based in more than 80 countries - are committed to excellence and delivering Tomorrow's Answers Today(TM).
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