Arnhem, the Netherlands, May 22, 2007- Akzo Nobel is to significantly broaden its position in the North American wood coatings market after signing an agreement to acquire Chemcraft Holdings Corporation, North America's largest privately-owned manufacturer of industrial wood coatings.
Established in 1976, Chemcraft operates nine manufacturing facilities across the United States, Canada, and Brazil, employing around 500 people. The company's 2006 revenues were USD 145 million.
"This is a strategically important acquisition which will enable us to add scale and value in a number of key North American wood coatings markets," said Akzo Nobel CEO Hans Wijers. "Chemcraft is a perfect fit with the activities of our Industrial Finishes business and will considerably enhance our presence in several complementary markets."
Chemcraft is a highly respected supplier of wood finishes in North America with a well developed distribution network and a history of solid profitability. Subject to receipt of regulatory approvals the acquisition is expected to be completed in the third quarter of 2007.
"This transaction is an excellent fit with our strategic goals, and supports our long-term commitment to the North American market," added Robert Taylor, President & General Manager of Akzo Nobel's Global Industrial Finishes business. "Chemcraft is a dynamic, customer focused organization which is perfectly aligned with the way we do business. Bringing these two successful businesses together will enhance our ability to better serve our wood customers."
With global headquarters in Louisville, Kentucky, Akzo Nobel's Industrial Finishes business is the world's largest manufacturer of coil coatings and factory applied wood coatings for furniture, kitchen cabinetry, building products and flooring. The business is also a leading supplier of specialty plastic coatings and wood adhesives.
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Note to editors
Akzo Nobel is a Fortune Global 500 company and is listed on both the Euronext Amsterdam and NASDAQ stock exchanges. It is also included on the Dow Jones Sustainability Indexes and FTSE4Good Index. Based in the Netherlands, we are a multicultural organization serving customers throughout the world with coatings, chemicals and human and animal healthcare products. We employ around 62,000 people and conduct our activities in these four segments, with operating subsidiaries in more than 80 countries. Consolidated revenues for 2006 totaled EUR 13.7 billion. The financial results for the second quarter will be published on July 24, 2007.
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Contact: Marc Michelsen
