AkzoNobel, a global company, entered into an agreement with Sherwin-Williams to acquire its Chinese decorative paints business. This transaction will be subject to regulatory approvals and is expected to be completed during the second half of 2023, which will significantly strengthen AkzoNobel’s presence in China.
This company reported annual revenues of 100 million euros and has a workforce of 300 employees. All this is accompanied by the Huarun brand, which has a very long history in the Chinese field and is well known in this country.
“The acquisition of Sherwin-Williams’ Chinese decorative paints business will help us deliver on our growth ambitions in tier three to tier five geographies in China. This planned acquisition is a strong strategic fit and our existing business is in the best position to unlock the full potential, thus offering new opportunities for employees and customers,” said AkzoNobel CEO Greg Poux-Guillaume.
Mark Kwok, the head of Decorative Paints Business from North Asia, spoke about how big of a deal it was for AkzoNobel China to acquire the Sherwin-Williams business. “The acquisition of this Sherwin-Williams business, and especially its well-known ‘Huarun’ brand of decorative paints will strongly complement our premium-focused Dulux product portfolio. This will give our customers access to a more diverse and robust offering. We look forward to welcoming these employees to the AkzoNobel China family and are excited about the opportunities we can achieve together.” he said.
AkzoNobel’s proposed acquisition continues a trend it has been following over time, acquiring small companies mainly related to the manufacture of paints and coatings. Examples include Titan Paints for Spain and Portugal, New Nautical Coatings to the United States, Grupo Orbis to Latin America and Lankwitzer Lackfabrik to Germany. Within the Sherwin-Williams business, the Chinese decorative paint business is known as the Chinese architectural paint business.
