Dulux paint owner AkzoNobel to merge with Axalta to create USD25b giant
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The news: Maker of Dulux paint AkzoNobel said that it plans to merge with competitor Axalta Coating Systems in a deal that will create a USD25 billion paint giant.
The numbers: A press release shared Tuesday said that AkzoNobel shareholders will receive a USD2.5 billion dividend payout and will be expected to own 55% of the new group, while Axalta investors will own the 45% that remains.
The companies said that the merger will create a global coatings leader with USD17 billion revenue and approximately USD600 million in cost synergies, 90% of which are expected to be achieved within the first three years following the close of the transaction.
The new company expects to see annual adjusted core earnings of USD3.3 billion and USD1.5 billion in adjusted free cash flow.
The context: The all-stock deal will see the company led by current AkzoNobel chief executive Greg Poux-Guillaume as CEO. The merger is expected to be completed in late 2026 to early 2027.
The news confirms an earlier report by Bloomberg which reported that AkzoNobel will acquire the smaller Axalta in a deal that valued the target at USD9.2 billion. AkzoNobel will ultimately shift its listing from Amsterdam to New York. Poux-Guillaume told Bloomberg that the new company will be domiciled in the Netherlands with dual headquarters in Amsterdam and Philadelphia.
What they said: “This merger will allow us to accelerate our growth ambitions by bringing together highly complementary technologies, expertise and passionate people to unlock our full combined potential”, Poux-Guillaume said. “I’m excited to lead our talented teams in bringing the best of both companies to our customers and shareholders, delivering outstanding value to both.”
The sources: AkzoNobel press release, Bloomberg
