FRIDAY, JUNE 3, 2022
On Wednesday (June 1), global coatings company AkzoNobel announced that it had reached an agreement with African coatings company Kansai Paint to acquire its paints and coatings activities in the region.
Present in 12 countries in Africa, Kansai Paint has regional consolidated revenue of around 280 million euros ($300.8 million). Alongside AkzoNobel’s existing Dulux brand, the two are reported to be the longest-established paint brands in the region.
According to AkzoNobel, the transaction would include the Plascon brand—which has more than 100 years of heritage in South Africa—in addition to various automotive, protective, coil and wood coatings.
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On Wednesday (June 1), global coatings company AkzoNobel announced that it had reached an agreement with African coatings company Kansai Paint to acquire its paints and coatings activities in the region. |
“Acquiring Kansai Paint’s activities in the region will help us to further expand our paints and coatings business in Africa and provide a strong platform for future growth,” said AkzoNobel CEO, Thierry Vanlancker. “Kansai Paint shares our commitment to innovation and sustainability, and we look forward to combining our expertise, which will result in a wider range of innovative products and more sustainable solutions for our customers.”
Kansai Paint’s President Kunishi Mori added, “We are convinced that AkzoNobel is the best owner as AkzoNobel considers the decorative paints business as a core business and will therefore be able to unlock the full potential of the business, thereby contributing to the development of the African economy.
“For Prejay Lalla and Arvind Shekhawat, Chief Executive Officers of KPAL and KPEA (the respective Africa entities being sold by Kansai Paint in this transaction), this agreement is an opportunity to further enhance growth. We believe that AkzoNobel will be the owner who will elevate the business to the next level as AkzoNobel is willing to invest in ESG, is committed to innovation, workforce development and broader career opportunities, as well as the long-term success of its paint businesses in Africa.”
Also commenting on the deal, Jan-Piet van Kesteren, Managing Director of AkzoNobel’s Decorative Paints Europe, Middle East and Africa Business said, “Kansai Paint Africa is a beautiful addition to our existing strong business, which spans across nine countries in the region. The acquisition will complement our portfolio of leading positions in attractive markets and world class brands in Africa, while driving growth in relevant emerging markets. It also offers us the unique opportunity to welcome another strong brand with a heritage of more than 100 years and a wide distribution network.”
Completion, which is subject to regulatory approvals, is expected sometime in 2023.
Recent News at AkzoNobel
The intended acquisition follows on from a series of recent acquisitions by AkzoNobel across paints and coatings over the last two years, including Titan Paints in Spain and Portugal, New Nautical Coatings in the U.S. and, most recently, Grupo Orbis in Latin America.
The same month that the Grupo Orbis acquisition was announced, AkzoNobel also reported that it had appointed Simon Parker as Managing Director for its Marine, Protective and Yacht Coatings business unit.
The company reports that Parker has 24 years of experience with AkzoNobel, including a string of senior leadership positions. Most recently, Parker held the position of managing director of industrial coatings, but as also lead the powder coatings and vehicle refinishes divisions.
According to the emailed press release, Parker, who is a keen sailor himself, is determined to ensure that the marine, protective and yacht coatings business unit retains its position as the reportedly most trusted coatings supplier across all three sectors.
In April, AkzoNobel announced the launch of its new Paint the Future initiative that aims to develop a shared approach to tackling climate change. According to the company’s release, the Collaborative Sustainability Challenge is a pioneering initiative designed to collectively accelerate carbon reduction in the paints and coatings industry.
The 24-hour event was expected to take place between May 17 and 18 in Amsterdam, the Netherlands. AkzoNobel reports that the event will involve senior executives and next generation leaders from a select group of partners, including suppliers and customers.
The open discussions in a non-confidential environment will involve a deep-dive into several areas:
According to AkzoNobel, its Collaborative Sustainability Challenge will build on the success its Paint the Future global startup challenge.
Tagged categories: Acquisitions; AkzoNobel; Business management; Business matters; Business operations; Dulux; Good Technical Practice; Kansai Paint; Mergers; Program/Project Management
