AkzoNobel, leading global producer of paints, coatings and specialty chemicals, has agreed to sell its Specialty Chemicals business to The Carlyle Group, a private equity firm, and Singapore’s GIC sovereign wealth fund for €10.1 Bn. The deal is subject to regulatory approvals and is expected to be concluded before the end of 2018.
According to AkzoNobel, a private sale to Carlyle was ‘in the best interests of AkzoNobel, Specialty Chemicals, and its respective stakeholders’. AkzoNobel expects €7.5 Bn in net proceeds from the sale, a major part of which would be paid back to shareholders. As part of the deal, Akzo must achieve a 15% margin on sales by 2020 through cost savings and efficiency measures.
Specialty Chemicals produces an array of chemicals used in plastic packaging, tissue paper, cleaning materials, pharmaceuticals, food products, salts, and adhesives. Parts of the specialty-chemicals business are among AkzoNobel’s most profitable and the unit generates about 40% of company’s adjusted operating income. AkzoNobel is headquartered in the Netherlands and has 45,000 employees in ca. 80 countries with a portfolio that includes well-known brands such as Dulux, Sikkens, International, Interpon, and Eka.
The Carlyle Group is a global alternative asset manager with $195 Bn in assets under management. Carlyle invests globally across four segments – Corporate Private Equity, Real Assets, Global Credit, and Investment Solutions. GIC is a leading global investment firm established to manage Singapore’s foreign reserves with investments in over 40 countries across a wide range of asset classes, including equities, fixed income, private equity, real estate, and infrastructure.
