Akzo Nobel to buy BASF's industrial coatings business

Dutch multinational paint and coatings maker Akzo Nobel today struck a deal to buy BASF's industrial coatings business for €475 million ($531 million).

The transaction includes technologies, patents and trademarks, as well as the transfer of two dedicated production sites – Deeside in the UK and Vanderbijlpark in South Africa.

BASF's industrial coatings business supplies products for a number of end uses, including coil, furniture foil and panel coatings, wind energy and general industry, and commercial transport.

The business generated revenue of about €300 million in 2015.

"This proposed acquisition will strengthen our position in the important coil coatings market and fits well with our existing business, allowing us to offer essential solutions to our customers," said AkzoNobel CEO, Ton Büchner.

''We have successfully developed our global industrial coatings business over the last years with a clear focus on attractive market segments. To further develop the business, we see positive growth prospects under the umbrella of AkzoNobel, which is a leading global player in industrial coatings,'' said Markus Kamieth, president of BASF's coatings division.

BASF's Coatings division develops, produces and markets automotive coatings, automotive refinishes and industrial coatings as well as decorative paints.

It has facilities in Europe, Asia Pacific, North America and South America and generated sales of €3 billion in 2014.