AKZONOBEL is selling its specialty chemicals business to The Carlyle Group and Singapore’s sovereign wealth fund (GIC), as the Dutch major focusses on producing paints and coatings.
AkzoNobel announced it would sell its specialty chemicals business in April last year, after fighting off an unsolicited takeover for the full company from rival PPG Industries.
The deal for the specialty chemicals business, which makes a range of chemicals including salt, bleaching agents and polymer additives, is worth €10.1bn (US$12.4bn) including debt.
The Carlyle Group and GIC won the business through an auction process, outbidding a number of rival private equity firms including Apollo Global Management and Hal Investments, reports The Financial Times. The deal is expected to be completed by the end of the year.
“Today is a key milestone in creating two focussed, high-performing businesses to generate value for all stakeholders,” said Thierry Vanlancker, CEO AkzoNobel.
“Carlyle has significant experience in the chemicals industry and a proven track record when it comes to health, safety, innovation and sustainability.”
Martin Sumner and Zeina Bain, managing directors at The Carlyle Group, said in a statement announcing the deal: “We are pleased to invest in the specialty chemicals business and proud to support a business with such a strong heritage. We are committed to growing the business, and building upon its innovation capability, high quality workforce and asset base, as well as its world-class sustainability and environmental practices. We look forward to working with the management team to transition the business to a successful independent company.”
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