Akzo Nobel is going to sell 100 % of its Specialty Chemicals business to The Carlyle Group and GIC for an enterprise value of $ 12.5 billion, the company announced.
Amsterdam/The Netherlands — As part of its strategy announced in April 2017, the transaction creates two businesses — Paints and Coatings, and Specialty Chemicals. The transaction is expected to be completed before the end of 2018.
In a press release, the company stated that the Board of Management and the Supervisory Board concluded that a private sale to The Carlyle Group and GIC was in the best interests of the company, Specialty Chemicals and its respective stakeholders, including employees, shareholders and customers. The deal was the outcome of a dual-track process during which the Boards considered both a legal demerger and a private sale.
As one of the reasons for the decision, Thierry Vanlancker, CEO of Akzo Nobel, mentioned Carlyle's experience in the chemicals industry and their proven track record when it comes to health, safety, innovation and sustainability.
The transaction is subject to customary closing conditions including the relevant regulatory approvals and consultation with the relevant employee representative bodies. The Amsterdam-based company obtained shareholder approval for the separation at an Extraordinary General Meeting held on November 30, 2017.