AkzoNobel today announced that it has received a binding offer for the purchase of its Building Adhesives business by Sika AG for €260 million. Building Adhesives generated annual revenues of €185 million in 2012.
The transaction, which is expected to be completed in the fourth quarter of this year subject to regular consultation with employee representatives, will see all of Building Adhesives’ approximately 550 employees as well as its two manufacturing facilities in Rosendahl (Germany) and Damville (France) and its products and brands transfer to Swiss-based Sika AG.
The intended sale of Building Adhesives follows a strategic review of the business’ fit within AkzoNobel’s portfolio. Building Adhesives is a standalone business within AkzoNobel’s Decorative Paints business area, primarily serving the professional market in North Western Europe with a portfolio of brands and products including floor and wall leveling compounds, floor adhesives, tile setting, sealants and floor finishes. Its respected brands include Schönox, Casco, Cégécol, Synteko and EriKeeper. AkzoNobel’s Wood Finishes and Adhesives business (which also operates under the Casco brand) is not the subject of this offer.
"We want to focus our Decorative Paints business at AkzoNobel on the strong strategic paint positions we have in Europe and the growth markets of Asia and South America,” commented AkzoNobel CEO Ton Büchner. “The intended sale of Building Adhesives is in line with this strategy. In Sika, with its portfolio of businesses in this industry, we are pleased to have found a good future home for this business."
Jan Jenisch, CEO of Sika: "Sika is looking forward to welcoming the successful team from the Building Adhesives business of AkzoNobel. The acquisition will make Sika a strong player in the interior finishing construction market and will complement our product range."
The proceeds will be used to repay short-term debt and improve liquidity.