AMSTERDAM – AkzoNobel NV, the Dutch paints and coatings multinational, is on a buying spree to broaden its global foothold. It acquired three companies in Europe, North and Latin America in the last two years.
And this month, it announced that it is buying the paints and coatings activities in 12 African nations from Japan’s Kansai Paint. The African acquisition is designed to boost AkzoNobel’s global foothold. Completing the purchase, which needs regulatory approvals, is expected in 2023.
AkzoNobel sells marine and protective coatings in the global boat and yacht sectors, generating revenues of €1.16 billion in 2021, up from €1.07 billion in 2020. Its key brands are International, Interlux, Seahawk and Awlgrip.
In its 2021 annual report, AkzoNobel signaled it plans to expand globally. At the end of 2021, it delivered its sixth consecutive quarter of revenue growth. CEO Thierry Vanlancker said his company responds to increases in raw materials with “strong pricing (that) allowed us to deliver a 2021 profit in line with the prior year.”
In 2017, AkzoNobel nixed several takeover bids from PPG Industries of Pittsburgh, Pa., causing shareholder turmoil that led to Thierry Vanlancker as CEO.
To mollify shareholders upset by the cold-shouldering of PPG Industries, he has set AkzoNobel on an activist path. He predicts it will grow “at or above its relevant markets” in the years ahead and continues to buy back AkzoNobel common shares to raise the company’s value.
In the past two years, it acquired Titan Paints (Spain and Portugal), New Nautical Coatings (USA) and Grupo Orbis (Latin America). Active in 12 African nations, Kansai Paint has a regional consolidated revenue of about €280 million annually. The Plascon brand has more than 100 years of heritage in South Africa.
“Together with our Dulux brand, they’re the longest-established paint brand in the region,” says Vanlancker. “Acquiring Kansai Paint’s activities in the region … will provide a strong platform for future growth.”
Prejay Lalla and Arvind Shekhawat, the CEOs of KPAL and KPEA – the respective Africa entities AkzoNobel is buying from Kansai Paint – say they believe “AkzoNobel will be the owner who will elevate the business to the next level.”
