Sunday, June, 23, 2024 03:23:04

The Dutch paint & chemical company AkzoNobel N.V. has recently announced that it has completed the sale of its specialty chemicals arm to Singapore’s GIC and U.S. private equity firm Carlyle Group in a deal worth 10.1 billion euros (USD 12.57 billion).

According to sources, the sale of the specialty chemicals business will now allow AkzoNobel to focus solely on its paints and coatings business. The company had already announced the deal earlier this year in March, after rejecting three takeover bids from its American rival PPG industries.

Charles Shaver, CEO of Specialty Chemicals, was quoted stating that its specialty chemicals business has a strong worldwide presence and a talented & dedicated team that will drive further growth through innovation and customer focus. This will significantly help the company to sustain its leading positions in its markets, added Charles Shaver, who was appointed as the new CEO in August.

The specialty chemicals unit, according to sources familiar with the matter, caters to the manufacturing of products including plastics, paper, personal care items, and building materials. AkzoNobel’s portfolio brands comprises of Dissolvine, Berol, Trigonox, and Eka among others, which operates in more than 80 countries worldwide.

According to the CEO of AkzoNoble, Thierry Vanlancker, this spin off move was a key milestone in the history of AkzoNobel, that created a specially focused paints & coatings company, with a clear strategy to create value, market leading positions, and strong global brands. He further appealed a successful future to the Specialty Chemicals business with Carlyle Group and GIC.

Carlyle Group said that the company is thrilled to invest in Specialty Chemicals to grow the business and continue to strengthen its competitive position.

It has been reported that AkzoNobel had agreed at the Extraordinary General Meeting of November, 2017, to return the massive proceeds from the sale of Specialty Chemicals to its stakeholders.