AkzoNobel Set to Boost Performance Coatings Business with Acquisition from BASF

AkzoNobel is advancing growth in top-line performance coatings with acquisition of BASF’s global industrial coatings business

Netherlands: Akzo Nobel N.V., a Europe based leading manufacturer of paints & coatings has reached an agreement with a Germany based chemicals company, BASF SE and has successfully acquired industrial coatings business of BASF at a price of USD495 million. The company is further set to boost growth strategy for performance coatings after acquisition of two manufacturing plants in the United Kingdom and South Africa along with nearly 400 employees from BASF’s industrial coatings business. In 2015, BASF generated revenue of USD313 million and hence, the acquisition would help AkzoNobel strengthen its position as a full-service coatings provider for the protection and maintenance of wind turbines, providing essential protection to wind power stations around the globe. The company is expected to witness enormous growth by the end of 2018, as a result of extending its existing performance coatings business.

TechSci Research depicts that the acquisition of BASF’s industrial coatings business is an excellent strategic fit, escalating AkzoNobel’s performance coatings business, particularly in the coil, protective and wood coatings sectors across the globe. Further, this acquisition would allow the company to service a broader customer base to drive growth of pigments business worldwide.

According to the recently published report by TechSci Research, “Global Pigments Market By Type, By Application, Competition Forecast and Opportunities, 2011 – 2021”, global pigments market size is estimated to cross US$ 34 billion by 2021. Segment-wise, inorganic pigments dominated the overall market in 2015, and this trend is anticipated to continue through 2021. Inorganic pigments are widely used in paints & coatings and plastics to provide various functional properties such as heat stabilization, antistatic, flame retardants, anti-block and UV stabilization. In 2015, Asia-Pacific region dominated the global pigments market, owing to huge presence of paints & coatings, plastics, construction and printing ink industries, coupled with increasing investments across diverse industry verticals. Few of the major companies operating in the global pigments market include BASF, Clariant, Huntsman, Tronox, and Lanxess, among others.