Carlyle Group purchases Akzo Nobel’s specialty chemicals business

One of the foremost bulk and specialty chemicals industry player, Akzo Nobel has apparently sold its specialty chemicals unit to the U.S. private equity company Carlyle Group. As per reliable reports, the Netherlands based firm intends to focus on its paints and coatings manufacturing divisions after concluding the latest deal, the valuation of which has been finalized at a massive USD 12.5 billion.

Authentic sources state that the firm had recently organized a meeting of the supervisory board in which the executives deliberated extensively over the bids submitted to acquire its chemicals division. Subsequently, after quoting the highest bid price and agreeing to keep the business intact, Carlyle and Singapore’s sovereign-wealth fund GIC were declared as the winners. Reportedly, the Carlyle Group has further assured Akzo Nobel regarding employee salaries and allowances.

Commenting on the firm’s decision, the Chief Executive Officer of Akzo Nobel, Thierry Vanlancker was quoted stating that different bids had diverse dimensions. He further stated that Carlyle Group viewed acquiring the chemicals unit of Akzo Nobel as a robust business opportunity on the whole.

For the record, Akzo Nobel braved a turbulent phase which was marked by an acrimonious spat with activist investor Elliot Management and the successful defense against PPG Industries Inc. Apparently, the latest deal comes a year after the bulk and specialty chemicals market giant turned down a hostile USD 29 billion takeover bid by the rival PPG Industries Inc.

As per industry experts, investors are poised to garner an estimated payout of around EUR 6 billion post the successful conclusion of the latest deal.

With an aim to achieve a 50 percent return on sales and 15 percent margins, Akzo Nobel will now have to attain impressive profitability in line with its competitors in the overall bulk and specialty chemicals industry, cite analysts.