Protective paints and coatings manufacturer PPG (Pittsburgh, Pennsylvania, USA) has entered into a definitive agreement to acquire Tikkurila (Vantaa, Finland) in an all-cash transaction worth approximately €1.1 billion ($1.3 billion). The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions.
“The combination of PPG and Tikkurila is extremely complementary, both geographically and from a decorative brand perspective,” says Michael McGarry, PPG chairman and CEO. “We have long admired Tikkurila’s rich history of establishing very strong decorative brands and product offerings in several northern and eastern European countries where PPG has minimal decorative presence.”
Established in 1862, Tikkurila is described as a leading producer and distributor of decorative paint and coatings. It has operations in 11 countries, with more than 80% of its revenue coming from Finland, Sweden, Russia, Poland, and the Baltic states. Its premium brands include Tikkurila, ALCRO, and Beckers.
“We will be able to provide customers with even more paint and coatings options by bringing together Tikkurila’s high-quality and environmentally friendly decorative products and distribution capabilities in these countries with PPG’s well-respected industrial and protective coatings,” McGarry says. “In addition, the combination will provide new cross-selling opportunities, growth opportunities for employees, and product solutions for new segments and customers.”
Tikkurila’s industrial paint business also 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 ($690 million) in 2019.
“During the past three years, we have made a clear turnaround and significant progress with our strategy,” says Elisa Markula, CEO of Tikkurila. “Joining forces with PPG can help us further accelerate our development with access to new technologies and resources.”
Source: PPG, www.ppg.com.