PUBLIC COMPANY; YEAR ESTABLISHED: 1994
REVENUE: $11.46 billion s (2016: $10.66 billion)
Decorative paints; Marine and protective coatings; Auto and specialty coatings; Industrial and powder coatings
Thierry Vanlancker, CEO, chairman of Board of Management and Executive Committee; Maarten de Vries, CFO and member of the Board of Management and Executive Committee.
AkzoNobel reported paint and coatings sales of $11.46 billion for 2017 and has approximately 35,700 employees in more than 80 countries. North America comprises 12 percent of sales, Mature Europe 33 percent, Emerging Europe nine percent, Asia Pacific 32 percent, Latin America nine percent and Other regions five percent. Revenue breakdown by business unit for Decorative Paints is Decorative Paints Europe, Middle East and Africa – 54 percent, Decorative Paints Latin America – 13 percent and Decorative Paints Asia – 33 percent. Revenue breakdown by business unit Performance Coatings is Marine and Protective Coatings – 22 percent, Automotive and Specialty Coatings – 27 percent and Industrial and Powder Coatings – 51 percent.
• AkzoNobel strengthened its leading global position in performance coatings through the acquisitions of V.Powdertech business for Powder Coatings, Flexcrete Technologies Ltd. for Protective Coatings and Disa Technology (Disatech) for Specialty Coatings.
• Opened the world’s most advanced and sustainable paint plant in Ashington, U.K. This will be the production center for its leading global brand, Dulux, which was also voted the healthiest brand in the UK.
• Other examples of the company’s focus on strengthening the business include a €13 million investment in a new innovation hub in the U.K, and the opening of a new Performance Coatings facility in Chonburi, Thailand.
• In September, AkzoNobel was ranked number one on the Dow Jones Sustainability Index. During the year, the company put particular emphasis on increasing its energy efficiency, reducing material waste and continuing to deliver more eco-premium solutions to its customers.
Recently launched products:
Recent examples include launches in South East and South Asia, helping to build on its existing portfolio of strong brands. AkzoNobel reported that it is making particular progress in Pakistan, where it has a long history and is an important market. AkzoNobel recently launched Dulux Promise – a complete range of interior and exterior products – in Pakistan.
“Dulux Promise is our first entry into the country’s mass market paints segment, so making sure we connect with consumers has been foremost in our minds,” said Ruud Joosten, COO. Having already proved to be successful in other parts of Asia, it is helping the business to drive volume. In fact, it has just enjoyed the most successful launch month for any of our products in recent history.
Another exciting launch in South East Asia was a series of innovative paint products with smart functionality. That’s right, paint can be smart. One example of this is an upgrade of the Dulux Weathershield range – specialist paint for exterior masonry.”
AkzoNobel recently announced the sale of 100 percent of its Specialty Chemicals business to The Carlyle Group and GIC for an enterprise value of €10.1 billion. This transaction creates two focused and high performing businesses – Paints and Coatings, and Specialty Chemicals – as part of its strategy announced in April 2017. The transaction is expected to be completed before the end of 2018.
The Board of Management and the Supervisory Board concluded that a private sale to The Carlyle Group and GIC is in the best interests of AkzoNobel, Specialty Chemicals and its respective stakeholders, including employees, shareholders, and customers. This is the outcome of a thorough dual-track process during which the Boards of AkzoNobel carefully considered both a legal demerger and a private sale.
The Carlyle Group has a global presence and the financial capacity to enable the Specialty Chemicals business to achieve its full potential. Carlyle has extensive experience investing in chemicals, unlocking long-term potential and creating value in its portfolio companies. As a responsible investor Carlyle is focused on driving growth, job creation, and long-term financial success. The firm also has a strong focus on Environmental, Social, and Governance (ESG) aspects and building positive working relationships with wider stakeholders (employees, unions and local communities).
“Today is a key milestone in creating two focused, high performing businesses, to generate value for all stakeholders,” said Thierry Vanlancker, CEO AkzoNobel. “We delivered on our commitment to separate the Specialty Chemicals business and did so ahead of schedule. We are very pleased to announce the sale of Specialty Chemicals to The Carlyle Group and GIC. We believe the business is well positioned to capture growth opportunities and further improve performance. Carlyle has significant experience in the chemicals industry and a proven track record when it comes to health, safety, innovation, and sustainability.