08 August 2013 06:31 [Source: ICIS news]
SINGAPORE (ICIS)--AkzoNobel will sell its building adhesives business to Switzerland’s Sika AG for €260m ($347m), the Dutch paints and coatings firm said on Thursday.
“The transaction … will see all of [AkzoNobel’s] building adhesives’ approximately 550 employees as well as its two manufacturing facilities in Rosendahl (Germany) and Damville (France) and its products and brands transfer to Swiss-based Sika AG,” the company said in a statement.
Sika had made a binding offer for the business, which generated €185m in revenues in 2012, AkzoNobel said.
The divestment, which is still subject to regular consultation with employee representatives, is expected to be completed in the fourth quarter of 2013, it 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,” AkzoNobel CEO Ton Buchner said in the statement.
“The intended sale of building adhesives is in line with this strategy,” Buchner said.
AkzoNobel said that the proceeds from the sale of the business “will be used to repay short-term debt and improve liquidity”.
($1 = €0.75)
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