Kerry Pianoforte, Editor02.12.21
An unexpected consequence of the COVID-19 pandemic has been an increase in M&A activity within the paint and coatings industry. Some of the bigger players with large decorative coatings segments (which was a bright spot in 2020) did relatively well and have the cash to make some big moves.
PPG has been quite active on the acquisition front.
In November the company announced that it has reached a definitive agreement to acquire Ennis-Flint, a global manufacturer of coatings with a broad portfolio of pavement marking products, including paint, thermoplastics and other advanced traffic technologies. The transaction, valued at approximately $1.15 billion, closed in December and PPG announced that it has established a new business unit called Traffic Solutions.
Last month PPG announced two more acquisitions – Wörwag, a global manufacturer of coatings for industrial and automotive applications and VersaFlex, a manufacturer specializing in polyurea, epoxy and polyurethane coatings for water and wastewater infrastructure, flooring, transportation infrastructure and industrial applications.
In December PPG also announced its intention to acquire Tikkurila, a Finnish company (ranked 26 in our 2020 Top Companies Report), with a market leading position in the region.
This announcement sparked a bidding war between PPG, Hempel and AkzoNobel. As this issue goes to press it appears that AkzoNobel is pulling ahead as the winner after submitting a bid worth approximately
$1.7 billion.
Tikkurila will make an attractive addition to AkzoNobel’s portfolio. The company is a leading producer and distributor of decorative paint and coatings with operations in 11 countries and more than 80 percent of its revenue coming from Finland, Sweden, Russia, Poland and the Baltic states.
Tikkurila’s industrial paint business participates in the wood and protective coatings end-use segments, among others.
The company employs approximately 2,700 people globally and reported sales of approximately €564 million ($617 million) in 2019.
PPG has been quite active on the acquisition front.
In November the company announced that it has reached a definitive agreement to acquire Ennis-Flint, a global manufacturer of coatings with a broad portfolio of pavement marking products, including paint, thermoplastics and other advanced traffic technologies. The transaction, valued at approximately $1.15 billion, closed in December and PPG announced that it has established a new business unit called Traffic Solutions.
Last month PPG announced two more acquisitions – Wörwag, a global manufacturer of coatings for industrial and automotive applications and VersaFlex, a manufacturer specializing in polyurea, epoxy and polyurethane coatings for water and wastewater infrastructure, flooring, transportation infrastructure and industrial applications.
In December PPG also announced its intention to acquire Tikkurila, a Finnish company (ranked 26 in our 2020 Top Companies Report), with a market leading position in the region.
This announcement sparked a bidding war between PPG, Hempel and AkzoNobel. As this issue goes to press it appears that AkzoNobel is pulling ahead as the winner after submitting a bid worth approximately
$1.7 billion.
Tikkurila will make an attractive addition to AkzoNobel’s portfolio. The company is a leading producer and distributor of decorative paint and coatings with operations in 11 countries and more than 80 percent of its revenue coming from Finland, Sweden, Russia, Poland and the Baltic states.
Tikkurila’s industrial paint business participates in the wood and protective coatings end-use segments, among others.
The company employs approximately 2,700 people globally and reported sales of approximately €564 million ($617 million) in 2019.