AkzoNobel to buy Axalta in $9.2 bln all-stock deal
Updates with context on deal
Investing.com-- Akzo Nobel (AS:AKZO) said on Tuesday it will acquire U.S.-based peer Axalta Coating Systems (NYSE:AXTA) in a $9.2 billion all-stock transaction aimed at creating a global major in the paints and coatings industry.
Akzo Nobel will offer 0.6539 of its shares for each share in Axalta, the two said in a press release. The figure values each Axalta share at about $42.91 per share, Investing.com calculations showed, based on Akzo Nobel’s Monday close, and is at a 52.3% premium to Axalta’s Monday close.
Akzo Nobel said it will also pay a special cash dividend to Akzo nobel shareholders of up to 2.5 billion euros ($2.90 billion) minus any dividends paid to shareholders before the completion of the deal.
Akzo Nobel shareholders will own 55% of the combined entity, while Axalta shareholders will own 45%, the companies said.
The deal is expected to drive “actionable run-rate synergies” of about $600 million, 90% of which are expected to be achieved in the first three years of closing the transaction, the two companies said.
The combined company will be listed solely on the New York Stock Exchange under a new name and ticker, and will have dual headquarters in Amsterdam and Philadelphia.
Akzo Nobel CEO Greg Poux-Guillaume will serve as CEO of the combined firm, while Axalta CEO Chris Villavvarayan will serve as deputy CEO. Axalta CFO Carl Anderson will serve as the CFO of the combined firm, with current Akznobel CFO Maarten de Vries set to retire prior to the closing of the term.
Bloomberg had reported late-Monday that the deal was close. Axalta shares surged 14% in aftermarket trading on the report.
Akzo Nobel manufactures Dulux paint, one of the most recognizable paint brands in the world. Its takeover of Axalta-- which manufactures liquid and powder coatings-- is likely aimed at increasing its global footprint, with the combined entity expected to operate in over 160 countries.
