Acquisition of BASF’s Industrial Coatings business demonstrates growth ambitions
Our strategic objective of pursuing value generating acquisitions started to gather momentum during 2016 following the acquisition of BASF’s Industrial Coatings business for €425 million (after closing adjustments and working capital requirements). Signed in February and completed in December, the deal strengthens our position as the number one global supplier of coil coatings.
The business – which is expected to generate revenue of around €280 million in 2017 – supplies a wide range of products for various industries, including construction, furniture, domestic appliances, wind energy and commercial transport. The acquisition includes all relevant technologies, patents and trademarks, as well as two manufacturing plants in the UK and South Africa.
We have also welcomed around 350 new colleagues to AkzoNobel, who will bring valuable know-how and expertise, enabling us to serve an expanded customer base worldwide with new products and maintenance solutions.
The acquisition underlines our participation in the ongoing consolidation of the European coatings market, focusing on our core segments such as wood and metal coatings. It also means we are now a leading, full service coatings provider for the protection and maintenance of wind turbines, supplying products for the entire structure – including the blades. In addition, it will give us access to opportunities in the growing wind power sector, enabling us to support the global shift towards more sustainable energy sources.
We have dedicated teams in place to ensure business continuity and maintain the highest service levels for all customers. We are looking forward to serving new clients and expanding our offering to those we already work with. The full integration of the business is expected to be finalized by the end of 2018.