MOSCOW (MRC) -- AkzoNobel N.V., a paints and coatings company and a maker of specialty chemicals Thursday said it received a binding offer from Swiss-based Sika AG to buy its Building Adhesives business for 260 million euros, said Rttnews.
The deal is expected to be completed in the fourth quarter. The proceeds from the deal will be used to repay short-term debt and improve liquidity.
AkzoNobel CEO Ton Buchner said, "We want to focus our Decorative Paints business at AkzoNobel on the strong strategic paint positions we have in Europe and the growth markets of Asia and South America. The intended sale of Building Adhesives is in line with this strategy."
Post the transaction, all of about 550 employees of Building Adhesives, and two manufacturing facilities in Germany and France and its products will be transferred to Sika AG.
Building Adhesives had generated annual revenues of 185 million euros in 2012.
As MRC wrote before, Akzo Nobel N.V. reported a 4% decrease in revenues in the second quarter compared with the same period last year. The company reported that this was due to divestments and adverse currencies against a backdrop of continued challenging market conditions. Operating income for Q2 was 17 percent lower at EUR322 million. Net income attributable to shareholders for the quarter rose to EUR429 million, buoyed by recognition of a deferred tax asset and profit on the divestment of Decorative Paints North America.
Akzo Nobel N.V., trading as AkzoNobel, is a Dutch multinational, active in the fields of decorative paints, performance coatings and specialty chemicals. Headquartered in Amsterdam, the company has activities in more than 80 countries, and employs approximately 55,000 people.
MRC