Akzo Nobel has made an offer to acquire Sico, Inc. Sico’s two largest shareholders, who own approximately 34% of the company’s common shares, have signed a binding commitment to tender their shares under the offer. The Sico board of directors has also recommended the offer to its shareholders.
Headquartered in Quebec City, Canada, Sico develops, manufactures and markets architectural paints including key brands such as Sico, Para and Bentonel, as well as related products such as Mulco caulking compounds. The company, which also produces and supplies industrial coatings, employs approximately 1,000 people in Canada, the U.S. and Mexico and achieved sales in 2005 of $270 million.
"This proposed deal underlines our strong commitment to the company's growth strategy for coatings, which involves accelerating our acquisition activity and investing in major expansion opportunities to enhance our portfolio and strengthen our global presence," said Akzo Nobel CEO Hans Wijers. "With its strong local brands, Sico fits perfectly into Akzo Nobel's current expansion strategy in the architectural segment. The proposed acquisition will provide us with a leading market position in Canada and allow us to grow in this market."
Pierre Dufresne, president and CEO of Sico, added, "We welcome the offer from Akzo Nobel. Being part of the world's biggest coatings company will not only boost the profile of our brands, but will also give our employees access to world class expertise and technology. Our customers will also benefit from enhanced products and services, all of which will prove invaluable in terms of building and maintaining our growth momentum."