Europe
AkzoNobel’s
acquisition of
BASF’s global
industrial coatings
operations could
be the first of
a number of
initiatives among
Europe’s coating
business to
reorganize their
activities.
AkzoNobel Reorganizes Activities with
Acquisition of BASF’s Industrial Coatings Operation
by Sean Milmo
European Correspondent
milmocw@rodmanmedia.com
Adeal under which AkzoNobel is taking over BASF’s global industrial coatings operations could be the first of a number of initiatives among Europe’s coating businesses to reorganize their activities.
After a period of consolidation in the
wake of the post-2008 economic crisis companies are now seeking opportunities both
for expansion and for concentrating their
resources more effectively on priority areas,
particularly where they can extend their technological competences.
Under the AkzoNobel-BASF deal,
AkzoNobel is acquiring for €475 million
($520 million) BASF Coatings’ businesses and
coatings, as well as coatings for wind ener-
gy plants, general industry and commercial
transport. The businesses have total annual
sales of approximately $300 million so that
AkzoNobel will be paying approximately 1.6
times sales revenue.
For AkzoNobel the agreement, which is
due to be completed by the end of this year,
was part of its strategy of gaining “leading
market positions delivering leading performance,” according to the company’s chief executive Tön Buchner.
But it also represents for the company, a shift
in strategy from one restricted to raising effi-ciencies to one directed to organic growth and,
if necessary, expansions through acquisition.
“We have been relatively cautious with regard to acquisitions in recent years, choosing
to concentrate on performance improvement
through operational excellence,” he explained.
“However, we are now at a stage where we
