Paints and coatings manufacturer AkzoNobel (Amsterdam, The Netherlands) is aiming to improve its position in China after reaching an agreement with Sherwin-Williams (Cleveland, Ohio, USA) to acquire its Chinese decorative paints business.
Completion, which is subject to regulatory approvals, is expected in the second half of 2023.
The business has an annual revenue of about €100 million and employs around 300 people. The transaction includes the Huarun brand, which has a long history and is well recognized in China.
“Acquiring the Chinese decorative paints business from Sherwin-Williams will help us to deliver our growth ambitions in tier three to tier five geographical areas in China,” says Greg Poux-Guillaume, AkzoNobel CEO. “This intended acquisition is a strong strategic fit and our current business is best placed to unlock the full potential, thereby offering new opportunities for employees and customers.”
The intended acquisition follows on from a series of recent acquisitions by AkzoNobel across paints and coatings over the last years, including Titan Paints in Spain and Portugal; New Nautical Coatings in the United States; Grupo Orbis in Latin America; and, most recently, Lankwitzer Lackfabrik in Germany.
“Acquiring this business from Sherwin-Williams, and especially their renowned Huarun decorative paints brand, will strongly complement our existing premium-focused Dulux product portfolio,” says Mark Kwok, director of North Asia business for decorative paints. This will give our customers access to a more diverse and stronger offering. We look forward to welcoming these employees to the AkzoNobel China family and are excited about the opportunities we can achieve together.”
Source: AkzoNobel, www.akzonobel.com.