Strategic review prompts AkzoNobel paper chems unit divestment
Tom Brown
08-Jul-2014
(updates with Kemira comment, unit performance, additional
detail)
LONDON
(ICIS)–AkzoNobel’s decision to sell its paper chemicals
business to Finland-based Kemira was taken after the business
was judged to be non-core, the Netherlands-headquartered
paints and coatings specialist said on Tuesday.
Kemira is to pay €153m for the business, with the transaction
expected to close in the first quarter of 2015.
According to AkzoNobel, the divestment was decided following
a strategic review of the business and how it aligns with the
company’s core strengths.
“We have concluded that our paper chemicals business will
have a better fit with another owner, allowing us to focus on
our strong chemical platforms,” said Werner Fuhrmann,
AkzoNobel’s executive committee member responsible for
specialty chemicals.
Kemira has also entered into a distribution agreement on
aspects of Akzo’s colloidal silica business relating to
retention and drainage applications for the paper industry.
AkzoNobel’s pulp and performance chemicals division will
retain its pulp bleaching, colloidal silica and expandable
microsphere operations following the close of the sale.
The paper chemicals business being acquired by Kemira
generated revenues of €243m in 2013, of which 40% was derived
from Europe, the Middle East and Africa (EMEA), 30% from the
Americas, and 30% from the Asia Pacific region, including
China.
The unit’s earnings before interest, taxes, depreciation and
amortisation (EBITDA) for 2013 was €23m, Kemira added.
The company, which counts pulp and paper sector operations as
one of its key focuses, alongside oil and gas, mining and
water treatment chemicals, forecasts €15m of annual synergies
from the purchase by the end of 2016.
“This acquisition is a major step in implementing
our growth strategy and it
significantly enhances our position, especially
in the packaging and board industry and strengthens our
presence in the Asia-Pacific region,” said Kemira CEO Jari
Rosendal.
Additional reporting by Nurluqman
Suratman
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