AkzoNobel to sell Specialty Chemicals to The Carlyle Group and GIC for €10.1 billion, by chemwinfo

Akzo Nobel N.V. (AKZA; AKZOY) 

• Key milestone in creating
  a focused, high performing Paints and Coatings company
  
  
• Unleashing the Specialty Chemicals business
  to achieve its full potential
  
  
• Thorough process results in best outcome
  for all stakeholders
  
  
• Vast majority of net proceeds
  to be returned to shareholders

AkzoNobel today announces

the sale of 100% of

its Specialty Chemicals business

to The Carlyle Group and GIC

for an enterprise value of €10.1 billion.

This transaction creates

two focused and high performing businesses

– Paints and Coatings, and Specialty Chemicals –

as part of its strategy announced in April 2017.

The transaction is expected to be completed

before the end of 2018.

The Carlyle Group has

a global presence and the financial capacity

to enable the Specialty Chemicals business

achieve its full potential.

Carlyle has extensive experience

* investing in chemicals,

* unlocking long-term potential and

* creating value in its portfolio companies. 

As a responsible investor Carlyle is focused on

driving growth, job creation

and long-term financial success.

The firm also has a strong focus on

Environmental, Social and Governance (ESG) aspects

and building positive working relationships

with wider stakeholders

(employees, unions and local communities).

The transaction is subject to customary closing conditions

including the relevant regulatory approvals

and consultation with

the relevant employee representative bodies.

AkzoNobel obtained shareholder approval

for the separation at an Extraordinary General Meeting

held on November 30, 2017.

This transaction values Specialty Chemicals at €10.1 billion

(Enterprise Value).

On the basis of the year-end balance sheet,

AkzoNobel expects to receive a cash payment of €8.9 billion.

Following deduction of deal and separation related costs,

as well as other previously announced liabilities,

the net proceeds are expected to be around €7.5 billion.

The vast majority of net proceeds

will be distributed to shareholders.

Further details will be announced in due course.

Equity for this investment will come from

* Carlyle Partners VII,

* Carlyle Europe Partners IV,

* Carlyle’s longstanding investment partner GIC

   (which manages Singapore’s foreign reserves)

   and co-investors.

Thierry Vanlancker,

CEO AkzoNobel

“Today is a key milestone in creating

  two focused, high performing businesses,

  to generate value for all stakeholders.

  We delivered on our commitment to separate

  the Specialty Chemicals business

  and did so ahead of schedule.

 “We are very pleased to announce

   the sale of Specialty Chemicals

   to The Carlyle Group and GIC.

   We believe the business is well positioned

   to capture growth opportunities

   and further improve performance.

   Carlyle has significant experience

   in the chemicals industry

   and a proven track record when it comes

   to health, safety, innovation and sustainability.”

Martin Sumner and Zeina Bain,

Managing Directors at The Carlyle Group

“We are pleased to invest in

 the Specialty Chemicals business

 and proud to support a business

 with such a strong heritage.

 We are committed to growing the business,

 and building upon its innovation capability,

 high quality work force and asset base,

 as well as its world-class sustainability

 and environmental practices.

 We look forward to working with the management team

 to transition the business

 to a successful independent company.”

Werner Fuhrmann,

CEO of AkzoNobel Specialty Chemicals

“Specialty Chemicals is a strong and profitable business

 with highly skilled and motivated employees

 serving our customers every day with essential chemistry.

 As a focused chemicals company we will concentrate

 our efforts and resources to accelerate profitable growth.