GPs bid for AkzoNobel's chemicals arm

Francesca Veronesi
05 February 2018

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Several private equity firms have submitted bids for the acquisition of the speciality chemicals division of Dutch conglomerate AkzoNobel, according to press reports.

The identified bidders were Carlyle; a partnership between Advent and Bain; Apollo, joined by the German speciality chemicals producer Lanxess; and Hal Investments, the Financial Times reported. Final bids are said to be scheduled for mid-March and a final decision should be taken in April.

AkzoNobel is also said to be considering listing the chemicals division as a distinct entity and issuing stock to its shareholders. The division reported EBIT of €169m from €1.2bn revenues for Q3 2017.

AkzoNobel intends to refocus on its core activity of making paints and coatings that protect surfaces against wear and corrosion on everything from car bodies to oil tanker hulls. The decorative paints division reported EBIT of €95m from €1bn revenues for Q3 2017.

The group has previous experience of private equity ownership. In 2004, the American PE firm Ripplewood Holdings bought AkzoNobel Phosphorous Chemicals, the phosphorus chemicals unit of AkzoNobel, for €230m. The acquisition saw the company rebranded as Supresta. In 2007, the GP exited the investment via a trade sale to Israel Chemicals for $352m.

AkzoNobel, founded in 1994, is a global paints and coatings company, providing ingredients, protection and colour paints to industries and consumers. The speciality chemicals division makes an array of chemical building blocks ranging from chlorine and salt to ingredients for soap and pesticides. The firm is headquartered in Amsterdam, some of its portfolio companies include Dulux, Sikkens and Interpon.