AkzoNobel has announced the intended sale of its global Paper Chemicals business to Kemira for €153 million. Paper Chemicals is part of the company’s Pulp and Performance Chemicals business and generated annual revenue of €243 million in 2013.
The intended sale of Paper Chemicals follows a strategic review of the business' fit within AkzoNobel’s portfolio. Paper Chemicals is part of the Pulp and Performance business within AkzoNobel's Specialty Chemicals business area. It does not include AkzoNobel's Pulp Bleaching business, nor its Colloidal Silica business. For the paper related part of Colloidal Silica, the parties will enter into a distribution arrangement. The Pulp Bleaching business and the Eka name remain core for AkzoNobel's Specialty Chemicals business.
"We are very pleased to announce this project," said AkzoNobel CEO Ton Büchner. "Kemira is a well-established player in this market and, with the sale of our Paper Chemicals business, we are following through with our strategy to focus on leading positions."
Werner Fuhrmann, AkzoNobel's executive committee member responsible for Specialty Chemicals, added: "We have concluded that our Paper Chemicals business will have a better fit with another owner, allowing us to focus on our strong chemical platforms. The Pulp and Performance Chemicals business will continue to focus on global leadership positions in pulp bleaching, colloidal silica and expandable microspheres."
Jari Rosendal, president and CEO of Kemira, said: "The intended acquisition of AkzoNobel's global Paper Chemicals business is a major step for Kemira in implementing our strategic growth plans. It further demonstrates our commitment to the industry by extending our geographical presence in EMEA, the Americas and especially APAC."
The transaction is expected to be completed in approximately six months, subject to regular consultation with employee representatives and satisfactory closing conditions, such as receipt of required regulatory clearance. AkzoNobel will continue as toll manufacturer of certain products and will enter into an agreement with regards to the colloidal silica supply to Kemira.