AkzoNobel has announced signing an agreement with The Dow Chemical Company (Dow) to acquire its powder coatings activities. Financial details were not disclosed.
AkzoNobel expects the deal to bring key technological know-how and significant potential to its Powder Coatings business as well as to enhance the company's position in the U.S.
Dow purchased the powder coatings activities earlier this year as part of its acquisition of Rohm & Haas. The business achieves global sales of several hundred million dollars and employs around 700 people.
“This is a strategic acquisition which will enable us to further penetrate key industrial coatings segments," explained Leif Darner, the AkzoNobel Board member responsible for Performance Coatings.
With powder coatings factories in the US, Europe, and China, Rohm & Haas developed several important new technologies—especially for the automotive and architectural segments—while the deal will also add MDF and thermoplastic capabilities to AkzoNobel's existing expertise.
"Our intention is to move towards a more dedicated approach, whereby sites concentrate on specific technologies," added Rob Molenaar, Managing Director of AkzoNobel Powder Coatings.
Because they contain no solvents and have application efficiency levels as high as 99 percent, powder coatings offer an environmentally sustainable alternative to liquid coatings, AkzoNobel said.
The transaction is expected to close during the second quarter of 2010, subject to customary closing conditions, including regulatory approvals. Consultations with employee representatives will be held as and when appropriate, according to AkzoNobel.
AkzoNobel, based in Amsterdam, the Netherlands, is an international manufacturer of paints and coatings as well as specialty chemicals and related products. A major manufacturer with offices worldwide, Dow Chemical is headquartered in Midland, MI, U.S.