AkzoNobel to divest its North American Decorative Paints

AkzoNobel to divest its North American Decorative Paints business 
AMSTERDAM, NETHERLANDS -- (Marketwire) -- 12/14/12 --  
* Decorative Paints North America sold to PPG at a value of $1.05
* Cash proceeds of approximately $875 million. 
* Deal includes Decorative Paints business in the US, Canada and
Puerto Rico. 
* Completion expected during Q2 2013. 
AkzoNobel today announced the divestment of its North American
Decorative Paints
business to PPG Industries, Inc. (PPG), for the
value of $1.05 billion. In 2011, the North American Decorative Paints
business had revenues of $1.5 billion, around 7 percent of
AkzoNobel's total 2011 revenue. 
AkzoNobel continues to have a strong presence in North America
through its Performance Coatings and Specialty Chemicals businesses,
with combined 2011 revenues of over $2.7 billion and close to 5,000
The company made the decision to divest Decorative Paints North
America following a successful four year turnaround. AkzoNobel has
made the  strategic
choice to focus its Decorative Paints Business
Area on key markets in Europe and its strong positions in high growth
The cash proceeds of approximately $875 million will be deployed to
support the
company's strategy. This includes investing in organic
growth for AkzoNobel, and reducing net debt. More details on
AkzoNobel's priorities will be disclosed during the Strategy Update
on February 20, 2013. 
"Over the past four years, the team has done a great job in turning
the North
American Decorative Paints business around," said Ton
Buechner, CEO of AkzoNobel.
"We are convinced that Decorative Paints
can get better returns from our leading
positions in Europe and high
growth markets. I am pleased that we have found a respected company
to take over the business. This agreement is a good outcome
for all
"This acquisition continues the accelerated pace of our business
portfolio transformation through further expansion of our coatings
businesses," said Charles E. Bunch, PPG chairman and CEO. "It is also
an attractive way to significantly increase our scale in the North
American paint market." 
AkzoNobel Decorative Paints in North America has around 5,000
employees and operates 8 manufacturing sites. It has a number of
successful brands, including
Glidden in the US and Sico in Canada. 
- - - 
AkzoNobel is a leading global paints and coatings company and a major
of specialty chemicals. We supply industries and consumers
worldwide with innovative products and are passionate about
developing sustainable answers for
our customers. Our portfolio
includes well known brands such as Dulux, Sikkens,
International and
Eka. Headquartered in Amsterdam, the Netherlands, we are consistently
ranked as one of the leaders in the area of sustainability.
operations in more than 80 countries, our 55,000 people around
the world are
committed to excellence and delivering Tomorrow's
Answers Today(TM). 
PPG Industries' vision is to continue to be the world's leading
coatings and
specialty products company. Through leadership in
innovation, sustainability and color, PPG helps customers in
industrial, transportation, consumer products, and construction
markets and aftermarkets to enhance more surfaces in more ways
does any other company. Founded in 1883, PPG has global
headquarters in Pittsburgh and operates in more than 60 countries
around the world. Sales in
2011 were $14.9 billion. PPG shares are
traded on the New York Stock Exchange. 
Pdf file AkzoNobel press release:
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Source: Akzo Nobel NV via Thomson Reuters ONE 
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Tim van der Zanden 
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Jonathan Atack
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