MONDAY, MAY 2, 2022
Last month, global coatings company AkzoNobel announced that it had completed the acquisition of Colombia-based paints and coatings company Grupo Orbis.
The acquisition is expected to strengthen AkzoNobel’s long-term position in Latin America and was first announced in June 2021.
“This is an excellent intended acquisition which aligns perfectly with our Grow & Deliver strategy of creating leading global positions and driving growth in emerging markets,” AkzoNobel CEO Thierry Vanlancker said at the time. “It will expand our long-term position across South America by establishing us as a frontrunner in the Andean region and in Central America, where several countries are high on the global growth rankings for the next decade.”
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Last month, global coatings company AkzoNobel announced that it had completed the acquisition of Colombia-based paints and coatings company Grupo Orbis. |
Grupo Orbis has a presence in 10 countries and has a consolidated revenue of around 360 million euros. The transaction includes the Pintuco paints and coatings business, Andercol and Poliquim (resins, emulsions, adhesives and specialty chemicals), Mundial (paints and related product distribution services) and Centro de Servicios Mundial (shared services center).
The Pintuco portfolio is noted to be made up of 75% decorative paints and 25% coatings, offering a wide range of products across ten countries, which is slated to create several opportunities for revenue synergies.
In total, Grupo Orbis employs about 3,000 people and has eight operational manufacturing sites.
In addition to creating value from global and regional product and service innovation, AkzoNobel says the acquisition will enable it to better serve customers across more geographies, as well as accessing new markets.
“This agreement represents an important growth opportunity for Orbis Group’s companies. We strongly believe there are several benefits, such as access to technology and innovation pipelines,” said Grupo Orbis CEO Andres Bernal back in June. “Likewise, we find great opportunities for the development of our employees and our clients, who will be able to access an enlarged and more complete portfolio.”
Financial terms of the acquisition were not disclosed.
Recent Moves
This is just the latest in a long string of acquisitions by AkzoNobel throughout 2021. Around the same time intentions of the Grupo Orbis acquisition was announced, the company revealed that its acquisition of 100% of the shares of Industrias Titan S.A.U., a decorative paints business based in Spain, was completed.
The financial terms of the deal were not disclosed, although, according to AkzoNobel, Titan generated an annual revenue of around 80 million euros. The transaction includes three production facilities (in Barcelona and Las Palmas, Spain, and Maia, Portugal) and seven logistics and service centers for decorative paints, including “one of the modern manufacturing plants for water-based paints in Europe,” according to the company.
The business, which has 425 employees, reportedly shares AkzoNobel’s commitment to sustainable product innovation. AkzoNobel announced the transaction in October and at the time said that the move aims to further grow in Europe with Titan’s shared commitment to sustainable product innovation.
At the end of 2020, AkzoNobel announced that it was set to increase its presence in the North American yacht coatings market with its acquisition of New Nautical Coatings. Although the privately-owned company operates out of a facility in Clearwater Beach, Florida, New Nautical Coatings is reported to be one of the top players in yacht coatings in North America, generating sales in the Caribbean and Australasia areas as well.
The company reports that the Sea Hawk brand has a high customer loyalty among yacht owners, shipyards and maintenance service providers due to its premium quality and product performance.
More recently, AkzoNobel released its 2022 first quarter earnings report, showing a 12% increase in revenue year-over-year (10% in constant currencies), along with a 9.1% ROS.
In the report, AkzoNobel also noted on the impact from the conflict in Ukraine and sanctions on Russia, which represents about 2% of its revenue being represented in Ukraine and Russia combined, the vast majority concerning Russia. The company reports that it has approximately 650 colleagues in the countries but is expecting to close the facilities.
In February, however, the company announced that it would be investing in the expansion of in-house resin manufacturing. The company expects to contribute around 15-20 million euros (about $17-22.6 million) in EBITDA by 2023.
Tagged categories: Acquisitions; AkzoNobel; Business management; Business matters; Decorative coatings; Good Technical Practice; Program/Project Management
