AkzoNobel said it plans to acquire coatings manufacturer Schramm Holding AG and the coatings activities operated by Schramm's largest shareholder, Korean company SSCP. The deal will enable AkzoNobel to strengthen its position in specialty plastic coatings and is expected to close in the second half of the year.
Based in Germany and listed on the Hong Kong stock exchange, Schramm manufactures and markets coatings for plastics, metals and electrical insulation and has grown its business by 18 percent annually over the last three years. The company’s revenue for 2010 totaled €115 million, with an EBITDA of €13.3 million.
SSCP has a strong position in the Korean mobile phone market and also supplies coatings to the wider consumer electronics industry. More than half of the combined revenues of Schramm and SSCP are in Asia, primarily in China, Korea, Vietnam and Thailand.
“This acquisition makes us the global leader in specialty plastic coatings for mobile devices, laptops and TVs," said Conrad Keijzer, managing director of AkzoNobel Industrial Coatings. "It will also enhance our position in the market for adding color and design to vehicle interiors, which is gaining momentum in China."
Under the terms of the transaction, Schramm’s shareholders will receive a voluntary conditional offer in cash for every Schramm share, valuing the share capital of the company at approximately €142 million.
The offer will be conditional upon receiving sufficient acceptances from Schramm shareholders and relevant merger control clearance. Schramm's largest shareholder, SSCP, has entered into an irrevocable agreement with AkzoNobel to sell their outstanding shares in Schramm (70.5 percent of the total holding), should the offer be accepted by shareholders.
Furthermore, AkzoNobel has entered into an agreement with SSCP regarding the purchase of SSCP’s carved-out coatings business based in Korea, subject to satisfactory due diligence, SSCP shareholder approval and closing and settlement of the voluntary conditional offer for Schramm Holding AG.