AkzoNobel and Axalta Agree to Merge to Create a Global Leader in Coatings

AkzoNobel and Axalta Coating Systems Ltd. have announced a definitive agreement to merge through an all-stock, reverse Morris Trust transaction, creating a global coatings company with an approximate enterprise value of $25 billion.

The union of these two leading companies in the sector combines portfolios of complementary, highly prestigious brands, with the aim of better serving customers in key markets and generating value for shareholders, employees and other stakeholders.

Based on the experience and track record of both companies, the combined company will have an attractive financial profile, industry-leading innovation capabilities and a balanced global presence in more than 160 countries, bringing global capabilities to local customers.

With attractive margins and solid cash flow, the new company will be well positioned to drive significant growth and create value for shareholders, starting from estimated revenues in 2024 of approximately $17 billion and a proforma adjusted free cash flow of $1.5 billion.

The merger is projected to generate identifiable and achievable synergies worth approximately $600 million, of which 90% is expected to be achieved in the first three years after the closing of the transaction.

Greg Poux-Guillaume, CEO and Chairman of the Board of AkzoNobel, expressed his enthusiasm for a new chapter in the distinguished history of the paints and coatings industry. “This merger will allow us to accelerate our growth goals by combining complementary technologies, experience and passionate people, unlocking our full joint potential.”
I am excited to lead our teams in delivering the best of both companies to customers and shareholders, generating outstanding value for all.”

Chris Villavarayan, CEO and President of Axalta, added that the union of these first-rate platforms will enhance innovation, develop new capabilities and strengthen customer relationships. “As the industry continues to evolve, this merger allows us to grow more competitively and open up new opportunities. Together, AkzoNobel and Axalta are positioned to establish a profitable and sustainable path as leaders in the coatings sector. Like AkzoNobel, we value our people as our greatest asset and are excited to unite our innovative and excellence-focused cultures.”