AMSTERDAM, the Netherlands – Paint and coatings manufacturer AkzoNobel has agreed to sell its North American Decorative Paints business to PPG Industries Inc. (PPG), Pittsburgh, for $1.05 billion.
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 United States, Canada and the Caribbean.
The transaction has been approved by the boards of directors of both companies and is expected to close in early second quarter 2013, subject to regulatory approvals. In 2011, the North American Decorative Paints business had revenues of $1.5 billion, around 7 percent of AkzoNobel's total 2011 revenue.
AkzoNobel will continue to have a presence in North America through its Performance Coatings and Specialty Chemicals businesses, with combined 2011 revenues of over $2.7 billion and close to 5,000 employees. The divestment is part of the company’s strategy to focus its Decorative Paints Business on key markets in Europe and in high-growth regions.
AkzoNobel Decorative Paints in North America has around 5,000 employees and operates eight manufacturing sites. Major brands include Glidden in the United States and Sico in Canada.
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