AkzoNobel to sell its specialty chemicals to Carlyle Group
AkzoNobel is all set to sell of its specialty chemicals segment to Carlyle Group, a U.S. private equity firm. The deal will be for $12.5 billion in order to transform the company into a focused supplier of paints and coatings.
In a move designed to allow it to focus on its main paints and coatings business, AkzoNobel is selling its specialty chemicals business to U.S. private equity firm Carlyle Group for US$12.6 billion.
AkzoNobel is a Dutch multinational company which creates paints and performance coatings and produces specialty chemicals for both industry and consumers worldwide.
AkzoNobel’s specialty chemicals business accounts for a third of its sales and profit. Last year, the company rejected a US$29 billion takeover attempt by rival PPG Industries Inc., a move that lead AkzoNobel’s CEO to break up the company.
The specialty chemicals business is AkzoNobel’s most profitable and the division will generate around 40 per cent of the company’s adjusted operating income. The unit also has a strong position in the commodity chemical chlorine market and products like ingredients used in personal care. The division being sold employs about 10,000 people, and produces an array of chemicals used in plastic packaging, tissue paper, cleaning materials, pharmaceuticals, food products, salts and adhesives.