PPG Industries reached an agreement to acquire the North American architectural coatings business of AkzoNobel in a deal valued at $1.05 billion.
The transaction was approved by the boards of directors of both companies and is expected to close early in the second quarter of 2013, subject to regulatory approvals.
“This acquisition continues the accelerated pace of our business portfolio transformation through further expansion of our coatings businesses,” PPG chairman and CEO Charles E. Bunch said in a statement. “It is also an attractive way to significantly increase our scale in the North American architectural paint market, which we anticipate will benefit from a prolonged construction market recovery.”
The acquisition includes the addition of about 600 AkzoNobel-owned paint stores creating a combined network of about 1,000 company-owned stores serving the North American market. “It also complements PPG's national home center strategy by extending our branded paint product offerings to more than 8,000 retail outlets,” said Bunch.
Included in the acquisition are all of AkzoNobel's North American architectural coatings manufacturing and distribution facilities, paint stores, product lines and employees related to the production, sale and distribution of architectural coatings in the United States, Canada and the Caribbean. Product brands include: Glidden, Flood, Liquid Nails, Sico and CIL. According to the statement, PPG will also license the Dulux, Devoe and Sikkens brands.